Tuesday, March 15, 2016

Iranian Crude Exports Increase After Sanctions End


Iran’s crude exports have broadly increased in line with the country’s expectations announced in mid-January, when economics sanctions related to its nuclear program ended. Destinations for Iranian crude exports have also diversified in recent months as the country tries to regain market share.

Total Iranian waterborne exports gradually increased over the past two months, reaching a record 45.8mn bbls in February 2016, according to Genscape’s monitoring of crude shipments from the Middle East Gulf

Total Iranian waterborne exports in January 2016 increased month-on-month by 0.26mn bpd and February saw another increase of 0.22mn bpd, reaching an average of about1.58mn bpd. 
Monthly Exports from Iran by Destination Region
Monthly exports from Iran by destination region. Click to enlarge
This corresponds with Iranian officials’ announcement when sanctions ended to ramp up crude exports by around 0.5mn bpd. Roknoddin Javadi, the managing director of Iran’s national oil company, NIOC, said on March 9, 2016, that Iran had reached 1.8mn bpd of production, according to Press TV.

Iranian officials said they intended to achieve output of 2mn bpd by the middle of the new Iranian year, beginning on March 20, 2016, which would put the target date for that around September 2016, according to Press TV.

Iran has also seeked to diversify its crude buyers by gaining back market share lost in Europe after sanctions began. Since mid-January , European oil companies Cepsa, Total and Lukoil have completed deals to buy Iranian crude, while four tankers with Iranian crude have headed to refineries in Algeciras, Spain, Le Havre, France, and Constanta, Romania.

Several other tankers were chartered by European companies to load crude in Iran during March 2016, according to ship broker reports. These include the VLCCs, Achilleas and Solana, which can carry 2mn bbls each. The ships were chartered by Total for European destinations.

Genscape will continue to track the growth in Iranian output as it happens to help market participants assess the impact of any changes in flow on regional markets.

Genscape monitors Middle East Crude exports daily using its Genscape Vesseltracker data together with market intelligence sources to identify the loadport of each departing crude tanker and track it through to its final destination. The weekly Middle East Crude Report published Wednesdays includes complete details on every departing shipment and will continue to track the dynamics on oil flows as it happens to help market participants assess the impact of any changes in flow on regional markets. 

Genscape and Vesseltracker have combined their extensive proprietary energy monitoring networks to launch the world’s most comprehensive and accurate picture of global shipping. To learn more about Genscape Vesseltracker, or request a free trial, please click here.

Using Genscape Vesseltracker data, the Middle East Waterborne Crude Report illuminates the flows coming out of the Middle East producing countries so that traders and analysts can better gauge markets in Asia, Europe, and the Americas. It provides traders and analysts with insight and analysis to better forecast short-term price shifts by enabling them to anticipate the arrival of crudes from the Middle East. This weekly report offers new transparency and helps market participants inform market positions, improve decision making, and gain insight on key market drivers. To learn more about the Middle East Waterborne Crude report, or to request a free trial, please click here.

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