Oil exports from Iran are rising despite lingering sanctions – Reuters
Iranian oil exports hit an all-time high at the end of 2022 and are continuing to grow in 2023 despite US sanctions because of rising shipments to China and Venezuela, reports Reuters.
PHOTO: Oil pipeline valve in front of the Iranian flag. Getty Images
A Reuters report cites energy consultant SVB International as saying Iran exported around 1.14 million b/d of crude in December, up 42,000 b/d from November.
SVB's Sara Vakhshouri tells Reuters that Iranian oil exports have remained strong in January because the US has not taken "serious crackdowns" on them during US President Joe Biden’s tenure, so far, compared to the Trump administration.
Petro-Logistics, one of the companies tracking oil supply, says Iranian crude exports hit their highest level in December 2022 since March 2019. According to data intelligence firm Kpler, Iranian crude exports stood at 1.23 million b/d in November of last year. This was the highest level since August 2022, although they slipped marginally below 1 million b/d in December last year.
According to cargo tracker Vortexa, China's December imports of Iranian oil hit a record of 1.2 million b/d, up 130% from a year earlier.
Vortexa tells Reuters that "most of these shipments found a home in Shandong, where independent refiners have turned to discounted grades since the second half of 2022 amid sluggish domestic demand and depressed refining margins.”
US-based think tank Washington Institute for Near East Policy has reported that Iran projects to export 1.4 million b/d of oil at an average price of $85/bbl as mentioned in the draft state budget.
However, the Washington Institute calls the forecast "unrealistic" since Tehran predicted the same volume last year but missed it. According to the think tank, the target reflects an “overly optimistic assessment of current conditions” and not a hope for international sanctions relief.
By Konica Bhatt
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