Tehran Is Racing the Clock to Export as Much Oil as Possible
India Coal Power Generation Jumps 14% in June Europe isn't rejecting air conditioning—it… What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… Iran is wasting no time in returning full steam to the oil export market after the Islamic Republic and the United States agreed in mid-June on a 60-day window to negotiate a deal.
Since the memorandum of understanding was signed and the U.S.
blockade aimed at preventing Iranian oil exports was lifted, Tehran has exported millions of barrels of its oil and has probably raised more revenues from these sales as the discounts of the Iranian crude to benchmarks have narrowed.
In the memorandum of understanding, Iran won several key concessions for the 60-day negotiations period.
blockade in the Gulf of Oman lifted – in exchange for Iran reopening the Strait of Hormuz – but the U.S.
sanctions on Iran’s oil sales were temporarily waived until August 21.
Iran was prepared for a surge in shipments as soon as the U.S.
Three days after the memorandum was signed, at least three supertankers, carrying a total of 6 million barrels of Iranian crude, moved to transit the Strait of Hormuz, in open AIS navigation showing Singaporean waters as a destination, vessel-tracking data compiled by Bloombergshowed.
On June 20, the volumes of Iranian crude transiting the Strait of Hormuz were the most Iranian oil openly making its way out of the key Iranian oil port at Kharg Island and into the Strait of Hormuz in a day since the war began on February 28, according to Bloomberg’s estimates.
The surge in Iranian shipments out of the Gulf and into waters near the Malacca and Singapore Straits gives Iran a lifeline to boost its exports that had suffered from the U.S.
blockade in the past two months.Related: Kuwait Wants Consortiums to Bid for $7 Billion Oil Pipeline Deal “Iranian-origin laden departures rose only 16% post-MoU because Iran was already the single largest origin during the blockade period, and a significant number of barrels were already positioned at Chabhahar (outside Hormuz) ready to move when the US blockade was lifted,” Claire Jungman, Director of Maritime Risk and Intelligence at Vortexa,saidlast week.
Iranian cargo movements had soared through March and early April, before the U.S.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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