• 3 minutes War for Taiwan?
  • 7 minutes How China Is Racing To Expand Its Global Energy Influence
  • 10 minutes Is it time to talk about Hydrogen?
  • 4 hours U.S. Presidential Elections Status - Electoral Votes
  • 2 days Mail IN Ballot Fraud
  • 12 hours Supreme Court rules against Cuomo's coronavirus limits
  • 9 hours “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 3 days Michael Moore Cranking Up Planet of the Humans Again
  • 3 hours Saudi Arabia Seeks to Become Top Hydrogen Exporter
  • 8 hours Biden's Green New Deal- Short Term - How Will He Start to Transition Out Of Crude?
  • 2 days Censorship in USA
  • 2 days “Consumers Will Pay For Carbon Pricing Costs” by Irina Slav

Japan Secures Insurance For Iranian Oil Ahead Of Waiver Decision

The Japanese parliament approved an extension of insurance coverage for imports of Iranian crude oil effective from the start of April and expiring a year later. However, this does not mean Japanese refiners will continue buying Iranian crude if they do not score sanction waivers from Washington.

Reuters reports Japan’s parliament approved the import insurance extension yesterday. Now, refiners are pressing the government to find a way to secure an extension to the waiver that Washington granted Tokyo and seven other importers in November.

Despite the sanction waiver, Japan only restarted its purchases of Iranian crude last month, at a rate of just a little above 76,000 bpd, compared to almost 160,000 bpd a year earlier. S&P Global Platts reports this was the first time Japanese refiners took in Iranian crude in four months as they treaded with extra caution around Washington, which still aims to reduce Iranian oil exports to zero.

According to shipping data from S&P Global Platts, the last Japan-bound cargo of Iranian crude left earlier this month and should reach Japan by mid-April. The sanction waiver that the U.S. granted Japan and seven other importers expires on May 4.

The chances for an extension seem slim right now. Washington’s special envoy for Iran, Brian Hook, earlier this week told VOA no new waivers will be granted after the expiry of the current ones.

Related: Texas Needs 11,000 More Miles Of Pipelines

“The policy of the United States is that we are not looking to grant any new oil waivers,” Hook said. “We did have to grant eight oil waivers in order to avoid shocking the global oil markets and causing a dramatic increase in the price of oil. We have taken off roughly 1½ million barrels of Iranian crude, and we have avoided a price increase in oil.”

“And that’s not an accident. We’ve done it very well and very carefully. 2019 is going to be a much better market for global oil supply, and the forecasters say that there will be more supply than demand. That gives us much better market conditions to accelerate our path to zero imports,” the official added.

By Irina Slav 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