Iran crude exports to rebound in April from March slump
Iran's April crude exports will rebound to above 1 million
barrels per day (bpd), industry sources said on Friday, after
falling in March to the lowest level seen since the West imposed
sanctions to reduce the oil flow in 2012, Reuters reported.
U.S. and European Union sanctions aimed at choking the flow of oil
money into Iran and forcing Tehran to negotiate curbing its
disputed nuclear programme have cut around a million barrels per
day from Iran's crude exports.
Iran is expected to export 1.08 million barrels per day (bpd) of
crude in April, preliminary data obtained by Reuters showed, up
from the 810,000 bpd that was scheduled to load in March and close
to export levels of around 1.1 million bpd in February. The volumes
are based on preliminary loading plans and final export volumes may
vary.
Asian refiners buy the bulk of Iran's reduced export volumes and
have steered clear of U.S. sanctions by steadily reducing imports.
Despite the rise in April loadings, Iranian oil exports will still
be down 36 percent on the year. Exports will likely drop further
this year as buyers reduce imports as required by U.S.
sanctions.
"Given that U.S. sanctions are likely to tighten further, exports
from Iran are not going to be rising," said Victor Shum, oil
consultant at IHS in Singapore. "I don't expect this rebound (in
Iranian oil exports) to be sustained."
The biggest month-on-month jump is from South Korea, which will
triple imports in April to about 190,000 bpd as refiner SK Energy
returns to contracted Iranian import volumes after shutting down a
refinery for maintenance, a company source said.
Japan will also increase imports in April from March as some
refining units are due to restart by late May after maintenance.
Its April volumes will likely more than double from the same month
a year ago when uncertainty over sanctions caused imports to
plunge.
China, Iran's top customer, is expected to lift 415,000 bpd of
crude in April, up from 379,000 bpd in the previous month. Taiwan
will resume Iranian oil imports for the first time this year.
Indian refiners Indian Oil Corp and Essar Oil are scheduled to lift
3.7 million barrels or 123,000 bpd of crude in April, the data
showed, but it is unclear what they will actually buy after
insurance companies said they could not cover plants using Iranian
oil.
The other two Iranian crude buyers in India, Mangalore Refinery and
Petrochemicals and Hindustan Petroleum Corp, have said they will
import none this month while they wait for clarification from the
Indian government on how they can insure their refineries if they
run Iranian crude.
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