Page 9 - MEOG Week 10 2021
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MEOG                                  PIPELINES & TRANSPORT                                           MEOG


       Iran ‘quietly’ resumes oil




       trade with China, India






        IRAN             IRAN has reportedly “quietly” moved record   “They [the Iranians] spoke to us. They said,
                         volumes of crude oil to top client China, while  ‘We hope to resume oil supplies very soon.’ We
                         India’s state refineries have added Iranian oil to  said, ‘Inshallah,’ “ one source at an Indian refin-
                         their annual import plans on the assumption that  ery was reported to have said.
                         US sanctions on Tehran will soon ease.  India, which as a major oil importer has suf-
                           Reuters on March 8 cited six industry sources  fered amid a recent robust rebound in global
                         and Refinitiv data in describing the apparent  crude prices, expected Iranian supplies to return
                         turn of events.                      to the market in three to four months, a govern-
                           Under sanctions brought in by former US  ment official said.
                         president Donald Trump when he scrapped par-
                         ticipation in the 2015 nuclear deal (formally the  Grey market
                         Joint Comprehensive Plan of Action, or JCPOA)  Unlike India, China never completely stopped
                         between Iran and six major powers, the US is still  importing oil from Iran in the wake of the Trump
                         officially committed to driving Iran’s oil exports  attempt to scupper all Iranian crude sales abroad.
                         to zero. Yet with hopes rising that Trump’s suc-  Various grey market manoeuvres have been used
                         cessor, Joe Biden, and Tehran can find a way to  to keep up some consignments.
                         resolve differences that would enable a resump-  According to Refinitiv Oil Research, Iran has
                         tion of full commitment to the JCPOA—and also  delivered about 17.8mn tonnes (306,000 bpd) of
                         perhaps a growing feeling that Biden officials  oil to China in the past 14 months, with volumes
                         may have eased back on US efforts in enforcing  reaching record levels in January and February.
                         the sanctions still in effect—Iran’s oil export offi-  Of these, about 75% were “indirect” imports,
                         cials appear to be already active in preparing the  identified as oil from Oman, the United Arab
                         ground for a full-on revival of the country’s oil  Emirates (UAE) or Malaysia, which entered
                         trade with China and India, formerly the second  China mainly through ports in the eastern prov-
                         largest client in purchasing Iranian crude.  ince of Shandong, where most of China’s private
                                                              refineries are located, or through the port Ying-
                         Reaching out                         kou in northeastern Liaoning province.
                         The National Iranian Oil Company (NIOC)   Geneva-based tanker tracker Petro-Logistics
                         began reaching out to customers across Asia as  said Iranian oil loadings in January exceeded
                         soon as Biden took office on January 20 to assess  600,000 bpd for the first time since May 2019, a
                         potential demand for its oil, Reuters sources were  sign that the end of Trump’s term may be chang-
                         quoted as saying.                    ing buyer behaviour.™





































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