• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 1 hour Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 59 mins Ecoside
  • 17 hours Oil at $40
  • 2 hours Not Just Nuke: Cheap Solar Panels Power Consumer Appliance Boom In North Korea
  • 1 day Welcome To The Club: Apple In Talks With Potential Suppliers Of Sensors For Self-Driving Cars
  • 3 hours Japan’s Deflation Mindset Could Be Contagious
  • 1 day Guaido and the Conoco Award
  • 2 hours Haaretz article series _ Saudi Arabia: A Kingdom in Turmoil | Part 1 - Oil Empire
  • 6 hours The Number Increases: Swiss To Support Belt And Road Push During President's China Trip
  • 1 day Trump Torpedos Oil Pipeline Haters
  • 19 hours Is Canada hosed?
  • 1 day Opening up the waters off the coast of Florida to oil and gas drilling
  • 1 day Negative Gas Prices in the Permian
Intel Notes - April 12th

Intel Notes - April 12th

There have been a number…

Iran’s Oil Exports Drop Ahead Of U.S. Waivers Decision

India refinery

While Iranian customers have started negotiations with the U.S. on possible waiver extensions to continue buying oil from Tehran, Iran’s oil exports so far in March are down from January and February to average around 1 million bpd-1.1 million bpd, Reuters reported on Thursday, citing industry sources and ship-tracking data.

This compares to around 1.3 million bpd estimated Iranian exports for February.

The U.S. waivers for eight key Iranian oil customers, including China, India, Japan, and South Korea, expire in early May. While the U.S. Administration says that it continues to pursue zero Iranian oil exports, analysts expect Washington to extend waivers to at least a few of the currently exempted buyers, with reduced volumes allowed under the new waivers, as the Administration wouldn’t want to push oil prices too high.

In January and February this year, Iranian crude oil exports were higher than expected, as several of Iran’s customers were using up their U.S. sanction waivers to continue importing Iranian oil, according to industry sources and shipping data, quoted by Reuters 10 days before the end of February.

According to tanker-tracking data from Refinitiv Eikon and a source at a company tracking Iranian oil flows, Iran’s exports in February averaged 1.25 million bpd, while the January exports were between 1.1 million bpd and 1.3 million bpd, higher than the previously expected below 1-million-bpd level, which was seen in December.

While tracking Iran’s oil exports has become an increasingly difficult task after the U.S. sanctions returned in early November, some of the key Iranian oil customers that received U.S. waivers resumed Iranian oil purchases in 2019 or increased imports to their respective ceiling allowed under the waivers, after an initial ‘wait-and-see mode’ for November and December purchases amid uncertainties who is getting waivers.

Related: Tesla Lagging Behind Competitors In European EV Markets

As the ‘waivers window’ will be shrinking as we approach early May, buyers may be rushing to buy what they can before April in order to be able to complete transactions before May in case waivers are not extended, according to analysts.

Japanese refiners, for example, are unlikely to continue buying Iranian crude from April onwards, the president of the Petroleum Association of Japan, Takashi Tsukuoka, said earlier this week, as quoted by Reuters.

However, Tsukuoka added that refiners would continue importing Iranian crude if Tokyo agreed on a sanction waiver extension, which it was currently negotiating with Washington.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News