Share

Iran oil exports show steady increase

Tokyo - Iran exported more crude than allowed under Western sanctions for at least a fourth straight month in February, as ship loading data obtained by Reuters showed top clients again bought more than 1 million barrels per day (bpd) of Tehran's oil.

The rise in sales to Iran's main clients, mostly in Asia and including Turkey, comes after an agreement that eased some of the sanctions aimed at the OPEC member's nuclear programme.

The November deal also freed up $4.2bn in oil payments to Tehran, but it does not allow for shipments to increase.

To ensure sanctions are not breached, Washington could put more pressure on Iranian crude buyers to slash purchases in coming months to keep the average volume capped at the 1-million-bpd mark, less than half pre-2012 levels.

In total, February crude loadings by Iran's top four buyers - China, India, Japan and South Korea - rose to 1.16 million bpd versus 994 669 bpd lifted in January, according to a loading plan seen by Reuters.

Adding in oil lifted by Turkey - which came in at 105 824 bpd in January and 117 857 bpd in February - Tehran's exports have busted the sanctions limits at least since November.

The loading volumes exclude condensate, a light oil, that Iran exports to China and other consumers.

Ever since the 2012 sanctions were imposed, five buyers - China, India, South Korea, Japan and Turkey - have bought nearly all of Iranian crude exports.

Ceiling breached

The intake of Iranian oil by Asian buyers alone has topped 960 000 bpd since November, government and industry data has shown, and adding in an average 100 000 bpd of crude for Turkey, the exports have breached 1 million bpd at least since then.

With January and February loadings - for February and March arrivals - also holding above 1 million bpd, according to the document seen by Reuters this week, exports look set to breach the cap for the first quarter of the year, allowing up to three weeks for shipments to China, Japan and South Korea.

China lifted 502 500 bpd in February, again taking its purchases back to pre-sanctions levels, and rivalling the 564 536 bpd that the nation's refiners received in January.

In comparison, China imported 428 840 bpd of Iranian oil for all of 2013, according to customs data. China's February import numbers are not due out until later this week.

China's total oil imports from Iran may rise in 2014 as state-run trader Zhuhai Zhenrong Corp is negotiating a new condensate contract, Reuters has reported.

India lifted 304 286 bpd of crude in February, according to the loading data. Iran's second-biggest client imported 412 000 bpd in January and averaged 195 600 bpd in arrivals in 2013.

Government sources in India have said refiners must cut their Iranian oil imports by nearly two-thirds from the first quarter after the United States asked it to hold the shipments at end-2013 levels.

South Korea loaded 214,286 bpd in February, mostly for March arrival dates. February arrivals from Iran, meanwhile, doubled from a year earlier as refiners hiked purchases ahead of maintenance shutdowns starting from March.

Japan loaded 140 000 bpd in February, according to the programme seen by Reuters. It purchased 210,517 bpd from Iran in January and reduced imports by 6.4% to 177 414 bpd in 2013, marking its lowest daily crude imports from Iran in more than 30 years.

Japan's February import numbers are due later this month.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.73
+1.5%
Rand - Pound
23.40
+1.7%
Rand - Euro
20.06
+1.7%
Rand - Aus dollar
12.26
+1.1%
Rand - Yen
0.12
+2.3%
Platinum
924.00
-0.2%
Palladium
966.00
-2.5%
Gold
2,341.38
+0.4%
Silver
27.47
+0.2%
Brent-ruolie
89.01
+1.1%
Top 40
69,366
+1.4%
All Share
75,360
+1.4%
Resource 10
62,534
+0.7%
Industrial 25
103,980
+1.4%
Financial 15
16,105
+1.9%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders