Page 9 - MEOG Week 21 2022

MEOG POLICY & SECURITY MEOG

Iran struggles to sell crude

now at anchor in Asia

IRAN AN estimated 40 million barrels of Iranian crude This figure is up 15 million barrels on the month
oil is currently sat offshore in ports around Asia prior. Speaking of the problems facing Iranian
looking for a buyer. As prices of Russian crude exports to Asia, Hamid Hosseini of Iran’s Oil,
have plunged in the weeks following Moscow’s Gas and Petrochemical Products Exporters
invasion of Ukraine, more and more oil cargoes Union said “Russia can switch almost half of its
from Iran have found themselves without end exports to southeast Asia, especially China …
destinations. and that is a huge potential threat for Iranian
The majority of these cargoes fell foul of Asian crude exports.”
markets looking to save money on cheaper, bet- Kpler has stated that Iranian exports of crude
ter quality Russian imports. In the three months averaged 930,000 bpd across the first quarter.
since the outbreak of war in Russia, sanctions by The bulk of this went to China.
the US and other Western nations had left Russia April figures were down to 755,000 bpd,
looking for buyers for its crude. although Iranian crude sales are notoriously
But with India, and increasingly China look- difficult to confirm with many buyers looking
ing to benefit by Russia’s present focus on Asia, to avoid scrutiny by US agencies charged with
one casualty has been Tehran. maintaining sanctions over Tehran.
In the months leading up to the February Speaking of China’s current preference for
24th invasion, Iran had been making headway Russian crude, Kpler senior analyst Homayoun
in increasing its own crude sales to Beijing. So Falakshahi says “China is now clearly buying
important was China to Iranian exporters that more Russian Urals cargoes. Exports of Urals
March saw Beijing buying between 700,000 and to China have more than tripled. That comes
900,000 barrels per day (bpd). despite a weakening in Chinese imports.”
These efforts have since fallen by the wayside Yet whilst on the surface, indications point
with sales in April thought to be between 200,000 to Moscow and Tehran competing for Asian
and 250,000 bpd down on a month earlier. buyers, it is thought that the nations are actually
This now leaves an estimated 40 million bar- working together to help Russia keep its export
rels of Iranian crude at sea with no takers. infrastructure alive; Tehran having years of
Singapore alone is known to have around experience in maintaining exports whilst under
20 tankers loaded with Iranian crude currently international sanctions.
anchored offshore according to shipping data. Russia’s Deputy Prime Minister Alexander
Some of these vessels are known to have been Novak visited Tehran this week accompanied by
in place since at least February, awaiting buyers representatives of Russian transportation and
willing to skirt sanctions imposed by the US and logistics agencies.
other nations on oil exports from Iran. Meetings were scheduled with Iran’s Ministry
As soon as Western sanctions were imposed of Roads and Urban Development in addition to
on Russia in late February and early March the influential Ports and Shipping Organization,
though, with Moscow looking to offload its although official announcements or details on
crude at discounted prices, more expensive Ira- agreements have yet to be released
nian cargoes found themselves unwanted. Sources speaking to some news agencies
Figures from the Kpler data and analytics have indicated however, that Russia has been
firm this week have determined that 37 million looking for information on trading oil whilst
barrels were anchored off Singapore a week ago. sanctioned.™

Week 21 25•May•2022 www. NEWSBASE .com P9