Iran's Crude Exports Dip to 14-month low
Iran's crude exports to hit 14-month low; May exports
to total 1.66 mln bpd in May.
Iran's crude oil exports are set to hit a 14-month low in May, a
person with knowledge of the Middle Eastern country's tanker
loading schedule said, suggesting the country is struggling to
raise exports after clearing out stocks stored on tankers.
Part of the drop may also be attributable to a decline in demand,
as loadings bound for India are set to slump to a one-year low
after a dispute over the award of a contract for a gas field and
Japan's orders fall by more than half from April.
Iran is also putting about 3 million barrels back into storage in
May, according to the source, underlining how much oil remains
available in the market despite an agreement between the
Organization of the Petroleum Exporting Countries (OPEC) and
non-OPEC producers to cut output and boost prices.
Crude oil loadings from Iran are expected to total nearly 1.7
million barrels per day (bpd) in May, with almost 100,000 bpd
being put into storage on tankers, according to the source.
Loading figures for condensate, an ultra-light crude, were not
available for May.
In April, the country is expected to export 1.8 million bpd of
crude and a little over 370,000 bpd of condensate, down sharply
from a six-year high of nearly 2.9 million bpd reached in
February for both forms of oil.
In March, Iran loaded around 2.6 million bpd a day of both crude
and condensate, mostly the former, according to the source. No
barrels of either crude or condensate were put in storage in
March and April.
The final figures for February exports were significantly higher
than preliminary numbers reported earlier by Reuters and show
Iran took full advantage of its exemption from the production
cuts by OPEC and non-OPEC producers, including Russia.
Still, Indian buyers are cutting purchases after state-owned
refiners agreed to cut their annual imports deal with Iran by a
fifth to put pressure on Tehran to award the Farzad B gas field
to an Indian consortium.
Crude liftings for India in May are expected to about 370,000
bpd, while in April Indian customers are lifting nearly 470,000
bpd of both crude and condensate.
Japan is scheduled to lift nearly 40,000 bpd in May, the lowest
Loadings of crude and condensate for China this month are to hit
a four-month low of a little over 500,000 bpd.
Reporting by Osamu Tsukimori and Aaron Sheldrick
Apr 21, 2017