‘Sanctions Unlikely to Stop Iran Oil Exports Completely’
STAVANGER, Norway (Dispatches) - Adviser at Saudi Arabia's Energy Ministry Ibrahim al-Muhanna said on Tuesday that the current U.S. sanctions on Iran are unlikely to stop the country’s oil exports completely.
Speaking at an oil conference in the Norwegian city of Stavanger, al-Muhanna said, "Current sanctions are unlikely to stop Iranian oil exports completely, as almost all experts agree. I mean, they will continue to export 1 million barrels per day or so.”
"The amount of oil going through the Strait of Hormuz is so large. There's more than 18 million barrels a day, about two thirds of world maritime oil trade. Meaning, cutting oil from there will lead to an acute oil shortage and prices will skyrocket," Muhanna said.
Meanwhile, Iran's LPG shipments loaded, or due for lifting, in August rose by 84,000 mt versus July to around 568,000 mt, the highest since the previous Western sanctions, fixtures from shipping sources showed recently.
The majority of the shipments are destined for China, where importers are grappling with higher import tariffs for U.S. LPG in an escalating trade war, and are scrambling for Middle Eastern cargoes instead.
The jump in Iranian exports also came ahead of the re-imposition of sanctions by the U.S.
Beijing and Tehran, meanwhile, have agreed to bolster strategic cooperation during Iranian President Hassan Rouhani's visit to China in June.
Yet, some traders remained concerned that if U.S. sanctions resumed in November, Chinese importers might stop taking LPG from Iran, which could further drive up cargo prices from that region.
Trading company Global Reality has loaded a cargo comprising 33,000 mt of propane and 11,000 butane from Persian Gulf Petrochemical Industry Commercial Co., or PGPICC, aboard the VLGC Gas Jasmine which left Bandar Imam Khomeini on August 4. It arrived at Fangcheng port in southern China on August 25, cFlow showed.
Trading company Triliance lifted at Bandar Imam Khomeini a 44,000 mt evenly split cargo from PGPICC aboard the LPG Scorpio, which departed August 9, and is due to arrive at Guangdong August 29, cFlow showed.
Naftiran Intertrade Co., or NICO, a unit of National Iranian Oil Co., has lifted aboard the LPG Capricorn, a 44,000 mt propane cargo from Iranian Gas Commercial Co., or IGCC, which sailed from Assaluyeh August 19. The VLGC is due to arrive in Guangdong September 4, cFlow showed.
NICO has also lifted at Assaluyeh aboard the Indian-flagged VLGC Takao Gas, formerly Gas Sapphire, a 44,000 mt propane cargo from IGCC. The vessel, which is now in the Sea of Oman, is bound for Ennore on the Indian east coast, cFlow showed.
Speaking at an oil conference in the Norwegian city of Stavanger, al-Muhanna said, "Current sanctions are unlikely to stop Iranian oil exports completely, as almost all experts agree. I mean, they will continue to export 1 million barrels per day or so.”
"The amount of oil going through the Strait of Hormuz is so large. There's more than 18 million barrels a day, about two thirds of world maritime oil trade. Meaning, cutting oil from there will lead to an acute oil shortage and prices will skyrocket," Muhanna said.
Meanwhile, Iran's LPG shipments loaded, or due for lifting, in August rose by 84,000 mt versus July to around 568,000 mt, the highest since the previous Western sanctions, fixtures from shipping sources showed recently.
The majority of the shipments are destined for China, where importers are grappling with higher import tariffs for U.S. LPG in an escalating trade war, and are scrambling for Middle Eastern cargoes instead.
The jump in Iranian exports also came ahead of the re-imposition of sanctions by the U.S.
Beijing and Tehran, meanwhile, have agreed to bolster strategic cooperation during Iranian President Hassan Rouhani's visit to China in June.
Yet, some traders remained concerned that if U.S. sanctions resumed in November, Chinese importers might stop taking LPG from Iran, which could further drive up cargo prices from that region.
Trading company Global Reality has loaded a cargo comprising 33,000 mt of propane and 11,000 butane from Persian Gulf Petrochemical Industry Commercial Co., or PGPICC, aboard the VLGC Gas Jasmine which left Bandar Imam Khomeini on August 4. It arrived at Fangcheng port in southern China on August 25, cFlow showed.
Trading company Triliance lifted at Bandar Imam Khomeini a 44,000 mt evenly split cargo from PGPICC aboard the LPG Scorpio, which departed August 9, and is due to arrive at Guangdong August 29, cFlow showed.
Naftiran Intertrade Co., or NICO, a unit of National Iranian Oil Co., has lifted aboard the LPG Capricorn, a 44,000 mt propane cargo from Iranian Gas Commercial Co., or IGCC, which sailed from Assaluyeh August 19. The VLGC is due to arrive in Guangdong September 4, cFlow showed.
NICO has also lifted at Assaluyeh aboard the Indian-flagged VLGC Takao Gas, formerly Gas Sapphire, a 44,000 mt propane cargo from IGCC. The vessel, which is now in the Sea of Oman, is bound for Ennore on the Indian east coast, cFlow showed.