Mexico



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Iran's secret oil shipments could help to cushion U.S. sanctions blow


Iran said it doesn't believe buyers of its oil will get waivers from the U.S. government - Play Video-

- Discounts, smuggling among tactics to thwart sanctions

- Country could ship 800,000 barrels a day in mid-2019: FGE

By Ellen Milligan

LONDON
Petroleumworld 09 03 2018

Discounts, bartering and smuggling are among the tactics Iran may lean on to keep almost 800,000 barrels a day of its oil exports flowing after U.S. sanctions resume in November.

Iran's Oil Minister Bijan Namdar Zanganeh alluded to this toolbox, which was used in the past, when he said Iran will find “other ways” to keep its crude in the market. The measures won't be enough to blunt the full impact of sanctions on oil exports, which have already slumped to the lowest level since March 2016.

In the last era of oil industry sanctions, the OPEC nation disabled tracking systems on its fleet of tankers, concealing destinations and volumes of oil exports. Millions of barrels of Iranian oil were unaccounted without the trackers.

Almost 200,000 barrels a day of the country's post-sanctions oil sales could be undisclosed, according to Robin Mills, chief executive officer of consultancy Qamar Energy in Dubai. “Exports at these levels will be important in cushioning the financial blow to Iran, but will not have a major impact on the world market.”

China, Turkey and India will likely continue to buy Iranian oil after the resumption of sanctions on November 4, with China's smaller refineries taking some of the murky, undisclosed shipments, according to Iman Nasseri, managing director of the middle east at FGE London. In total, Iran could export 800,000 barrels of oil a day well into 2019, including some 20,000 barrels sent by trucks to Iraq, Afghanistan and Pakistan, he said.

History shows that Iran can keep exports going, albeit at a far lower rate, even as Japan, South Korea and most European countries shun its oil months before the resumption of sanctions in November. Many buyers won't be able to resist steep discounts, and some may revamp a barter trade that was effective earlier this decade.

“Barter trade and special funding mechanisms are among ways that could allow payments to Iran to continue within the framework of the sanctions,” said Ehsan Khoman, head of Middle East and North African research at Mitsubishi UFJ Financial Group Inc. He said India devised agreements between 2012 and 2016 to buy Iranian oil with rupees, and then Iran used the proceeds to import goods from India.

Despite access to these tactics, there is little doubt that Iran's energy industry and economy will be hurt by the U.S. penalties. The country's exports to Europe have already plunged 45 percent, or 226,000 barrels a day, since May, and Total SA and Royal Dutch Shell Plc have completely stopped buying the country's oil.

_________________________

Story by Ellen Milligan from Bloomberg News.

bloomberg.com 09 03 2018

_________________________

 

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1

November 13 - 15, 2018.

Gubkin University, Moscow
SPE Student Chapter

 


TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.