TOKYO/SINGAPORE: Iran’s crude oil exports fell for the first time in five months in March, and are slated to drop further in April, moving closer to the levels stipulated by November’s temporary nuclear deal that eased some sanctions on Tehran.
Under the agreement reached in Geneva, Iran’s oil exports were to remain at an average 1 million barrels per day (mbpd) for the six months to July 20, but since the signing last year, shipments to Asia alone had topped that mark until this month.
The drop in crude exports to just over 1mbpd in March and to 953,000bpd for April, according to ship loading data, reduces pressure on Tehran ahead of talks next month to finalise an end to the decade-old nuclear dispute.
The drops have come mainly because Japan did not take any cargoes in March and South Korea is not scheduled to take any shipments in April.
“When the Iranian exports increased, the market noticed so I’m not surprised that they might try to cut back some in the upcoming period,” IHS oil consultant Victor Shum said.
“As far as China is concerned, the offtake is a bit higher, but it goes up and down, so on average, for the year, China will keep it under the target,” he said.
Iran’s biggest customer China will increase loadings this month to 552,000bpd, about a third higher than a year ago. Reuters
