Purchases of Iran Oil Increase ahead of Possible Sanctions

  • 6/30/2018
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Imports of Iranian crude oil by major buyers in Asia rose to the highest in eight months in May as purchases increased ahead of possible new sanctions on the country, government and ship-tracking data showed. China, India, Japan and South Korea last month imported 1.8 million barrels per day (bpd) from Iran, the data showed. That was nearly 15 percent higher than a year earlier and the most since September. China, India, Japan and South Korea last month imported 1.8 million barrels per day (bpd) from Iran, the data showed. That was nearly 15 percent higher than a year earlier and the most since September. Purchases of crude from Iran by the four countries may fall by the end of the year after President Donald Trump last month pulled the US out of a landmark agreement on curbing Tehrans disputed nuclear program. The US is reimposing sanctions on Iran that were lifted after the agreement was agreed in July 2015 and demanding other countries cut their trade ties with the Middle Eastern country. Those demands are starting to be heard. Indias oil ministry has asked refiners to prepare for a “drastic reduction or zero” imports of Iranian oil from November, two industry sources told Reuters. Chinas imports of Iranian crude in May rose 5.3 percent to just over 718,00 bpd from the previous year and are almost 10 percent higher in the first five months of the year. Indias imports from Iran jumped nearly 45 percent from May last year to around 700,000 bpd and are up 6.4 percent in the year through last month. South Korean purchases slumped 27 percent to nearly 194,000 bpd and fell by more than a third in the year to date. Imports into Japan rose 32 percent in May to around 210,000 bpd from a year earlier, but are down 5 percent for the year, data from the countrys Ministry of Economy, Trade and Industry showed on Friday. Oil prices rose on Friday on concern that US sanctions against Iran would remove a substantial volume of crude oil from world markets at a time of rising global demand. Benchmark Brent crude was up $1.54 at $79.39 a barrel after jumping as much as $1.85 to session high of $79.70. Brent was on track for a 5 percent weekly rise. Meanwhile, top oil exporter Saudi Arabia has boosted supply to 10.70 million barrels per day in June, close to a record high, a Reuters survey found, a sign the kingdom wants to make up shortfalls elsewhere in OPEC and moderate prices. That is up 700,000 bpd from May and means oil supply from the Organization of the Petroleum Exporting Countries will be higher in June despite a drop in Iranian exports and outages in Libya, according to the survey’s preliminary results.

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