Iran is making rapid forays into the European crude oil market and selling its parcels to countries such as France, Italy, Greece and Spain, UK-based global shipping consultancy, VesselsValue said.
“Following the removal of sanctions, new players have emerged in the mix,” VesselsValue said in a report. Iran’s crude oil shipments have been delivered to destinations ranging from Malaysia and Singapore in Asia to Syria in Africa, it said, according to Platts.
In 2016, the number of voyages to deliver crude from Iran to France was estimated at 21, while Italy, Greece and Spain took 15, 14 and 13 shipments respectively, it said. This includes shipments in VLCC, Suezmaxes and Aframaxes.
In July 2012, the European Union had banned the import of Iranian crude by member countries and also the provisions of EU-linked insurance, which included protection and indemnity cover for any shipments of Iranian crude, irrespective of destination. The sanctions were relaxed in January last year.
There has also been a significant change in the geographical mix of owners whose ships were used to lift Iranian cargoes of crude.
Prior to the lifting of sanctions, the National Iranian Tanker Company (NITC) was the largest provider of tonnage to load cargoes from Iran, in addition to Iran-o Hind, Idemitsu Tanker, JX Ocean and KLine.
The Iranian ships were provided local insurance cover but there were always concerns over the possibility of any potential liability in event of maritime accidents in waters of importing countries which were permitted to purchase crude from Tehran.
During the period of sanctions, India permitted Iranian ships to call at Indian ports based on Tehran’s local insurance cover, China used ships of domestic companies while the Japanese government provided insurance cover only for VLCCs.
South Korea and Taiwan also took deliveries of cargoes purchased on a cost and freight (CFR) basis.
Now, “the group of shipowners lifting crude from Iran has changed dramatically to include those from Greece and Belgium”, VesselsValue said.
“The influx of owners from Greece has significantly increased the number of Suezmaxes plying on the ex-Iran voyages to 81 last year, compared with 15 in 2015,” the report said.
While NITC continues to be the market leader in terms of the number of ships deployed for loading crude from Iran, other companies with ships loading from the country include Dynacom, Delta Tankers, Euronav, Polembros, COSCO, Avin International, Olympic Shipping and Management, New Shipping and Thenamaris, it said.
Last month, two Iranian VLCCs, the ‘Huge’ and the ‘Snow’ delivered a mix of the country’s heavy and light crude grades to Shell at Rotterdam, according to trade sources and S&P Global Platts.
In late January, Iran’s Oil Minister Bijan Namdar Zanganeh said that the country was producing 3.9 mbd crude and was set to reach its 4 mbd target by the end of the Iranian year on March 20.
This will mark the return of Iran’s output to levels last seen before 2012, when international sanctions were imposed on the country.
A Platts survey released on February 6 estimated Iranian production at 3.72 mbd in January, up 30,000 bpd from December.
While cuts in crude production have been initiated under an OPEC-led agreement, Iran is allowed to boost its output to 3.797 mbd. If this materializes, Iran’s output would exceed its OPEC quota by more than 100,000 bpd.
This is expected to translated into more crude shipments from Iran. According to VesselsValue, the seaborne exports of Iranian crude are rising significantly.
The number of crude laden shipments from Iran increased to 563 last year — up from 66 in 2012 and 277 in 2015, their data showed.
Iranian film ‘The Salesman’ on Sunday won the Oscar for best foreign language film, but director Asghar Farhadi skipped the Hollywood gala to protest a travel ban by US President Donald Trump.
Farhadi initially said he would head to Hollywood for Oscars night, where his film — the story of two actors whose relationship turns sour during a performance of Arthur Miller’s ‘Death of a Salesman’ — earned a statuette.
However, after citizens from seven Muslim-majority countries were briefly denied entry last month to the United States, he decided there were too many ‘ifs and buts’ about whether he would be allowed to enter the country.
Instead, thousands of people watched ‘The Salesman’ for free in London’s Trafalgar Square.
In a statement read out at the Oscars ceremony on Farhadi’s behalf by Anousheh Ansari, an Iranian-American astronaut, Farhadi said the empathy filmmakers can foster is needed today more than ever. Ansari was joined onstage by another accomplished Iranian-American, Firouz Naderi, a former NASA director.
“I’m sorry I’m not with you tonight,” Farhadi’s statement read. “My absence is out of respect for the people of my country and those of other six nations who have been disrespected by the inhumane law that bans entry of immigrants to the US.
“Dividing the world into the ‘us’ and ‘our enemies’ categories creates fear.”
At the age of just 44, Farhadi has established himself as Iran’s most acclaimed director, touching people around the globe with stories that resonate beyond borders.
This was his second film to win an Oscar in the foreign language film category, following the 2012 victory for ‘A Separation’ — a stark, powerful family drama about Iran’s fractured social classes, which also picked up a Golden Globe.
Coming at another dark time in relations between the United States and Iran, when international sanctions were at their peak, Farhadi’s 2012 speech was lauded back home for putting Iranian art, culture and history above politics.
But this time, politics trumped art.
Best Foreign Language Film The Salesman Asghar Farhadi (Iran) is accepted by a designated woman reading Farhadi’s statement. REUTERS/Lucy Nicholson
Farhadi’s lead actress, Taraneh Alidoosti, also boycotted the event, calling Trump’s visa ban ‘racist’.
The measure has been put on ice by the US federal courts, and Trump’s White House is devising a new order.
Born in 1972 near the ancient city of Isfahan, Farhadi was swiftly drawn towards the arts, becoming interested in writing, drama and cinema while still at school.
He later took courses at the Iranian Young Cinema Society and graduated with a master’s degree in film direction from Tehran University in 1998.
‘The Salesman’ also found success at last year’s Cannes film festival, with Farhadi winning best screenplay and his star Shahab Hosseini named best actor.
It was his second official festival selection after his French-language film ‘The Past’ in 2013, which won the ecumenical jury prize.
89th Academy Awards – Oscars Backstage – Hollywood, California, U.S. – 26/02/17 – Anousheh Ansari and Firouz Naderi pose with the Oscar they accepted on behalf of Asghar Farhadi, who won the Best Foreign Language Film for “The Salesman”. REUTERS/Lucas Jackson – RTS10HRL
The structure of Farhadi’s scripts “is always complex but fluid”, cinema writer Beatrice de Mondenard said at the time.
“He seeks to show the difficulties inherent in relationships between people, the choices faced by everyone, choices which make us question our values and our convictions.”
Farhadi’s ‘About Elly’, which tells of a woman who vanishes on a beach getaway with friends, scooped the Silver Bear award for best director at the 2009 Berlin film festival.
Other films include ‘Dancing In The Dust’, ‘Fireworks Wednesday’ and ‘Beautiful City’.
Late Iranian filmmaker Abbas Kiarostami was also honored at the 89th Academy Awards.
The Academy awards ceremony named Kiarostami in a video that honored the world artists who passed away in 2016.
Kiarostami was also an accomplished photographer and painter. His last film was ‘Like Someone in Love’ (2012) — a romantic drama set in Japan — was nominated for a Palme d’Or at Cannes.
Congratulations
Iranians cheered the choice of one of their own for the best foreign film Oscar, lauding director Farhadi’s boycott of the Hollywood ceremony for his film as an act of defiance against the Trump administration.
The six nominated directors in the foreign language category had put out a joint statement ahead of the award decrying what they called the climate of ‘fanaticism’ in the United States and dedicating the award to the promotion of ‘unity and understanding’ regardless of who won.
Film critic Esmaeil Mihandoost, who wrote a book about Farhadi, told AP that thanks to the boycott, the film director has now “more influence on public opinion than a politician”.
“It created an exceptional opportunity for criticism” of Trump’s policy,” he added.
Iranian Foreign Minister Mohammad Javad Zarif said he saw the prize as taking a stance against Trump’s executive order. “Proud of Cast and Crew of ‘The Salesman’ for Oscar and stance against #MuslimBan. Iranians have represented culture and civilization for millennia,” he tweeted in English.
Vice President Es’haq Jahangiri praised Farhadi both for the award and for boycotting the ceremony, calling it a ‘priceless action’.
Farhadi had organized a free screening of ‘The Salesman’ in London’s Trafalgar Square on Sunday.
89th Academy Awards – Oscars Backstage – Hollywood, California, U.S. – 26/02/17 – Anousheh Ansari and Firouz Naderi pose with the Oscar they accepted on behalf of Asghar Farhadi, who won the Best Foreign Language Film for “The Salesman”. REUTERS/Lucas Jackson – RTS10HRP
Meanwhile, Iran’s Culture Minister Abbas Salehi-Amiri congratulated Iranian filmmaker for winning the Oscar and commended his stance against the racist policy of Trump administration against refugees.
“In today’s chaotic, insecure and dark world, it is altruism, pacifism and a shining light which bring freedom-seeking people together, and you [Asghar Farhadi] were successful in using the expressive language of the arts to convey the peaceful message of Iran and the Iranians beyond geographical borders,” he said in his message to Farhadi for winning his second Oscar.
“Your symbolic absence at the Academy Awards as a protest against the shortsighted and racist policies of America’s novice politicians against refugees brought together many with a good conscience together and removed the mask from the false faces of those so-called defenders of human rights, at the same time as it displayed to the world the true, culture-loving image of the Iranians,” he added.
He underlined, “As of today, the world acknowledges that the ‘Iranophobia’ project was nothing but a deceit, and you managed to tie the Iranian outlook of contemporary ills of humanity with the shared outlook of the whole world.
“Your message today was the message of sympathy, empathy and solidarity.”
He concluded, “No doubt, Iranian cinema with its major share in promoting and fostering culture and national security, can make great use of such opportunities to introduce the Iranian arts on an international level.”
London Mayor Sadiq Khan told the crowds: “President Trump cannot silence me. We stand in solidarity with Asghar Farhadi, one of the world’s greatest directors.”
2017 Academy Award winners
The coming-of-age drama ‘Moonlight’ won the best picture at the 89th annual Academy Awards Sunday night in a chaotic ending.
The film won after ‘La La Land’ was mistakenly announced as the best picture winner.
Presenter Warren Beatty said he paused so long before the name was read because the envelope read Emma Stone, ‘La La Land’. Actress Faye Dunaway read the name ‘La La Land’ after chiding Beatty for taking so long to read the winner.
The film tells the story of a boy’s journey to adulthood through his rough upbringing in Miami. The film stars Naomi Harris as the boy’s drug-addicted mother, and Mahershala Ali as a drug dealer-turned mentor for the boy.
The winners are as follows:
Best Picture: ‘Moonlight’
Actor: Casey Affleck, ‘Manchester by the Sea’
Actress: Emma Stone, ‘La La Land’
Supporting Actor: Mahershala Ali, ‘Moonlight’
Supporting Actress: Viola Davis, ‘Fences’
Directing: Damien Chazelle, ‘La La Land’
Foreign Language Film: ‘The Salesman’, Iran
Adapted Screenplay: ‘Moonlight’, screenplay by Barry Jenkins, story by Tarell Alvin McCraney
Original Screenplay: Kenneth Lonergan, ‘Manchester by the Sea’
Production Design: ‘La La Land’, Production Design: David Wasco; Set Decoration: Sandy Reynolds Wasco
Cinematography: Linus Sandgren, ‘La La Land’
Sound Mixing: ‘Hacksaw Ridge’, Kevin O’Connell, Andy Wright, Robert Mackenzie and Peter Grace
Sound Editing: ‘Arrival’, Sylvain Bellemare
Original Score: ‘La La Land’, Justin Hurwitz
Original Song: ‘City of Stars’ from ‘La La Land’, music by Justin Hurwitz, lyric by Ben Pasek and Justin Paul
Costume Design: Colleen Atwood, ‘Fantastic Beasts and Where to Find Them’
Documentary (short subject): ‘The White Helmets’, Orlando von Einsiedel and Joanna Natasegara
Documentary Feature: ‘O.J.: Made in America’, Ezra Edelman and Caroline Waterlow
Film Editing: ‘Hacksaw Ridge’, John Gilbert
Makeup and Hairstyling: ‘Suicide Squad’, Alessandro Bertolazzi, Giorgio Gregorini and Christopher Nelson
Animated Feature Film: ‘Zootopia’, Byron Howard, Rich Moore and Clark Spencer
Animated Short Film: ‘Piper’, Alan Barillaro and Marc Sondheimer
Live Action Short Film: ‘Sing’, Kristof Deak and Anna Udvardy
Visual Effects: ‘The Jungle Book’, Robert Legato, Adam Valdez, Andrew R. Jones and Dan Lemmon
Iran has zipped past the likes of Venezuela and Nigeria to become India’s third largest oil supplier as easing western sanctions enabled Indian companies to increase purchases from that country.
Saudi Arabia and Iraq continue to be ahead of Iran, which was sixth biggest supplier of crude oil to India in 2015-16, PTI reported on Wednesday.
It has overtaken Venezuela, Nigeria and UAE to become India’s third largest supplier in April-December period of 2016-17.
Iran sold 19.8 million tons of crude oil to India in the nine-month period, officials said. This behind Saudi Arabia’s 30.3 million tons and 29.1 million tons sourced from Iraq.
In full 2015-16 fiscal, Iran had supplied 12.7 million tons of crude oil to India. That year Saudi Arabia had sold 40.4 million tons of oil to India with Iraq chipping in 26.8 million tons. Venezuela supplied 23.6 million tons, Nigeria 23.4 million tons and the UAE 15.7 million tons.
Iran was India’s second biggest supplier of crude oil after Saudi Arabia till 2010-11 but western sanctions over its nuclear program relegated it to the 7th spot in subsequent years.
In 2013-14 and 2014-15, India bought 11 million tons and 10.95 million tons respectively from Iran, officials said.
Easing of western sanctions a year ago has led to Indian refiners raising their purchase from Iran.
During April-December 2016-17, Venezuela supplied 17.5 million tons of oil, the UAE 13 million tons and Nigeria 12.8 million tons.
Kuwait, which was third largest supplier in 2013-14 has steadily slipped, supplying just 7.6 million tons in first nine months of 2016-17 fiscal.
Iran in 2008-09 sold 21.81 million tons oil to India, which came down marginally to 21.19 million tons in the following year. It fell to 18.49 million tons in 2010-11 and to 17.44 million tons in 2011-12.
After the imposed sanctions, India brought down the purchases to 13.14 million tons in 2012-13 and had limited them in the years thereafter.
Officials said India imported 161.7 million tons of crude oil in the April-December period this fiscal, 64.2 percent of which came from the Middle-East region.
India spent $50.62 billion on crude oil imports during the nine months.
January 2017 imports up
Meanwhile, shipping data showed on Wednesday that India’s Iran oil imports rose marginally in January compared to the previous month.
In January, Iranian oil imports more than trebled compared with the same month last year, rising to 554,600 barrels per day (bpd), according to ship tracking data and a report compiled by Thomson Reuters Oil Research and Forecasts.
Indian refiners including Reliance Industries Ltd, operator of the world’s biggest refinery complex at Jamnagar, that had stopped imports from Iran during the sanctions period, have also returned as buyers of Iranian oil.
During January India’s oil imports from Brazil surged to its highest level since April 2015, while imports from Venezuela plunged, almost matching the supplies received in August 2016.
Nigerian oil supplies, hit by militant attack on the African nation’s major Trans Forcados Pipeline, to India fell by 54 percent last month from a year ago.
That forced key Indian clients of Nigeria, mostly state-run companies, to turn to Angola. Imports from Angola rose nearly 70 percent.
Swedish Prime Minister Stefan Löfven arrived in Tehran on Friday night 10 February 2017 and was welcomed by Iranian Minister of Industries, Mines and Trade Mohammadreza Nematzadeh.
President Rouhani officially welcomes Swedish PM
President Rouhani officially welcomed Swedish Prime Minister Stefan Löfven at Sa’dabad Palace on Saturday 11 February 2017.
There are ample opportunities to develop Tehran-Stockholm ties/Iran, Sweden determined to deepen cooperation
Describing Tehran-Stockholm relations close and historical, President Rouhani said: “Developing ties between the Islamic Republic of Iran and Sweden, as a developed European country, an EU member and a non-permanent member of the UN Security Council, is very important for us”.
Speaking at a joint press conference with the Prime Minister of Sweden on Saturday in Tehran, President Rouhani said: “Sweden’s position towards our country during the sanctions and the nuclear issues has always followed moderation”.
He added: “There are ample potentials to develop ties between the two countries in the fields of transportation, environment, ICT, mining and industries”.
Referring to the two countries’ determination to restore the cooperation, especially in economy, between the two countries to the pre-sanctions era, Rouhani said: “We are seeking to tap economic potentials and opportunities, especially Export Guarantee Fund and closer banking relations”.
“We believe that the European Union should fully support European companies and banks in the post-JCPOA era for them to make the best use of the environment for common interests,” continued Rouhani.
He also referred to negotiations about Iran’s transit route and connecting the Northern and Eastern Europe to the Indian Ocean through railways and roads, and said: “Developing academic, scientific, technological, and communications ties will be beneficial to both countries”.
“The first official visit by the Prime Minister of Sweden and the high-ranking delegation, accompanies by the representatives of 40 companies to the Islamic Republic of Iran means that there is serious resolve by both sides to develop ties in all fields and decrease tensions in the region, ultimately leading to regional and global peace and stability”.
At the same press conference, the Prime Minister of Sweden, Stefan Löfven expressed happiness over visiting Tehran, saying: “The former Prime Minister of Sweden visited Tehran in the 80s multiple times to mediate between Iran and Iraq during the war but this is the first official visit of a Swedish Prime Minister to Iran and I am very happy that the honour is mine”.
He continued: “We discussed regional issues, human rights, Syrian issues, and Iran’s relations with other key countries of the region, such as Saudi Arabia”.
“We also talked about closer ties between companies of the two countries and following this visit, a number of ministers and representatives of great Swedish companies will visit Iran,” Löfven went on.
A senior Oil Ministry official said Iran is boosting oil production by 90,000 barrel per day in line with last year’s OPEC agreement.
“We are increasing our oil output which will reach the designated production level,” Gholamreza Manouchehri, National Iranian Oil Company’s (NIOC) deputy head for engineering and development affairs told IRNA.
On November 30, 2016, the Petroleum Exporting Countries (OPEC) finalized an agreement to cut its overall production by 1.2 million barrels a day and set its new production ceiling at 32.5 million barrels a day as of January 2017.
The agreement, however, allowed Iran to raise production by 90,000 bpd to nearly four million barrels a day from January this year.
Manouchehri pointed to reports that Iran’s production ceiling has increased beyond the level set by OPEC saying the rise does not run counter to the terms of the agreement.
“Iran’s average oil production must only be below the level set by OPEC in a period of six months,” he added.
The November deal — the first in eight years — also granted Libya and Nigeria, which had seen their production drop due of armed conflict, an exemption from the cut.
Oil has rallied since November amid speculations that the supply cuts would boost prices. Some market analysts say that crude prices could reach $60-$70 a barrel in the coming months if the cuts are fully enforced.
Iran oil market upbeat
Since the lifting of sanctions began in January last year, the Islamic Republic has largely increased oil exports.
Speaking on the first anniversary of the implementation of the Iran nuclear deal in a gathering in Tehran on January 16, First Vice President Es’haq Jahangiri said that the exports of Iran’s oil and gas condensates are at their highest levels since the 1979 Islamic Revolution.
Tehran and the P5+1 — the US, Britain, France, China, Russia plus Germany — signed the nuclear accord known as the Joint Comprehensive Plan of Action (JCPOA), on July 14, 2015.
Under the landmark deal, which went into force on January 16, 2016, the Islamic Republic undertook to place restrictions on its nuclear program in exchange for the removal of nuclear-related sanctions against the country.
An Iranian oil tanker has called at a European port for the first time since the lifting of sanctions last January, said managing director of the National Iranian Tankers Company (NITC) said.
Sirous Kianersi added the first NITC tanker leased to a major Spanish oil company docked at the Port of Algeciras just recently, reported IRNA on Wednesday.
More NITC tankers are heading to other European ports, he said, adding two vessels are currently en route to the Netherlands.
NITC is the biggest tanker company in the Middle East and one of the largest in the world with a capacity of 15.5 million tons per year.
Managing Director of Iran’s Port and Maritime Organization Mohammad Saeednejad also said on Wednesday that the lifting of sanctions has allowed Iranian ships to fully resume operations to Asian, European and American ports.
Since October, Iranian VLCCs have reportedly completed 32 voyages delivering around 70 million barrels. China accounted for 13 voyages and India for 12 others.
As many as 17 international shipping lines have resumed their calls at Iranian ports which were deserted by and large during the sanctions, Saeednejad said.
Iranian VLCC fleet, which had been used as floating storage, has started to reappear on international trading routes. Since October, more than 20 NITC-operated VLCCs have returned to the market compared to just 13 in October.
Iran’s oil exports hit 2.04 million barrels per day in November, recovering from a decline of around one million barrels per day during the sanctions. Over the last 12 months, European customers have resumed lifting Iranian crude oil, with France, Spain, Greece, Italy, the Netherlands and Taiwan taking at least one shipment.
According to ship tracking data, the number of Iranian VLCCs in storage has fallen from 16 to 7 units, which equals to a reduction of 20 million barrels. As much as 15 million barrels of crude oil is estimated to remain in floating storage on NITC’s VLCCs — down from an estimated peak of between 40 and 50 million barrels.
On Tuesday, a report said global ship insurers were about to resume near full coverage for Iranian oil exports from next month without involving US-domiciled reinsurers.
Restrictions on US firms handling Iranian goods had greatly limited the number of reinsurers of cargoes, but the new arrangements, which essentially allow re-insurance of ships without the involvement of US firms, should boost the number of eligible shipments, Reuters reported.
“There will be no US-domiciled reinsurer participation on the 2017 IG reinsurance program,” the news agency quoted Andrew Bardot, secretary and executive officer at the International Group (IG) of P&I Clubs in London, as saying.
Deputy Iranian oil minister said a daily average of 2.83 million barrels of crude oil and gas condensate were exported in the previous Iranian calendar month (ended December 20, 2016).
On the latest status of crude and gas condensate exports, Iranian Deputy Oil Minister for International Affairs Amir Hossein Zamaninia said the average figure for the first nine months of the current Iranian calendar year (began March 21, 2016) stood at about 2.570 thousand barrels per day.
The official noted that exports of crude and gas condensate climbed to over 2.83 million barrels per day in the earlier Iranian month (November 21-December 20, 2016); “in other words, Iran’s oil industry exports figure has experienced a twofold rise as compared to sanction years.”
He emphasized that following sanctions removal in the past year, oil sale revenues have been received smoothly from customers; “the country’s oil income in the nine-month period amounted to about 29 billion dollars while, in view of the recent oil freeze deal by OPEC members in Vienna, the figure is expected to increase further.”
Zamaninia noted that all sanctions against Iranian tankers had been cancelled underlining that “presently, Iranian oil tankers perceive no restriction for use of flags of different countries and purchase of parts and equipment is being done with ease and at lower costs both at home and abroad.”
He pointed to release of Iran’s blocked facilities in various foreign firms like Germany’s Siemens reiterating that “buying equipment from original manufacturers has significantly lowered the costs.”
Italy ranked first among European importers of Iranian goods in the nine months to December 20, 2016, Iran Customs Administration (ICA) figures showed.
Italy was first among European importers of Iranian commodities importing over 678,000 tons of Iranian goods worth more than $385 million in the nine-month period, announced Iran’s customs office, IRNA reported.
It further said that 40 European countries imported Iranian goods valued at $1.856 billion.
In late November, Italian Ambassador to Iran Mauro Conciatori in a meeting with Hormuzgan Governor General Jassem Jadari in Bandar Abbas voiced Rome’s willingness to expand economic and industrial relations with Tehran.
Iranian President Hassan Rouhani and former Italian prime minister Matteo Renzi met in New York which was the fourth meeting in the past years, he pointed out. During the meeting the two sides underscored the need to double efforts to broaden relations, Conciatori said during the meeting.
He reiterated that Iran and Italy have deep familiarity about each other and have been in contact with each other through Silk Road which can pave the way for boosting ties between the two countries.
Conciatori pointed to the berthing of Italian warship in Bandar Abbas, and said, “The presence of the Italian warship shows the positive development in relations between the two countries.”
Iran’s deputy petroleum minister says Tehran’s total crude oil and condensate sales reached around $30 billion in the first 9 months of the current calendar Persian year which started on March 20.
“Iran’s crude and condensate exports surpassed 2.8 million barrels per day (bpd) in December 2016,” Amir Hossein Zamaninia said on Saturday.
Iran exported nearly 2.6 million bpd during the first 9 months of the current year, he added.
“In fact, Iran’s crude and condensate exports have been doubled following the implementation of Joint Comprehensive Plan of Action (JCPOA),” Zamaninia noted.
Iran’s crude and condensate exports surpassed 2.8 million bpd in December 2016 and exported nearly 2.6 million bpd during the first 9 months of the current Persian year.
In July 2015, Iran and the five permanent members of UN Security Council plus Germany clinched a deal following marathon talks.
Under the international agreement which was implemented in January 2016, Tehran agreed to put curbs on its nuclear program in exchange for the removal of unilateral sanctions.
In 2012, Iran’s energy sector was hit by the US-led sanctions, reducing the country’s crude exports from 2.5 million bpd to nearly 1 million barrels per day.
As a result of the sanctions imposed by the United States and the European Union, Iran’s exports of crude oil and condensate dropped to their lowest level since 1986.
The sanctions also negatively affected investment in Iran’s oil sector, cutting crude production sharply.
OPEC output cut deal
The recent boost in Iran’s oil sales comes against a backdrop of efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other major crude exporters to contain global supply glut to prop up prices.
Back in December, OPEC clinched a historic deal with Russia and other non-members to slash global production by nearly 1.8 million barrels a day for six months starting January.
OPEC exempted key member Iran from cutting output, allowing the country to increase its crude production by 90,000 bpd to reach pre-sanction output levels of 4 million bpd.
Iran’s Deputy Petroleum Minister for International Affairs and Trading Amir Hossein Zamaninia pointed to the recent deal and said Iran’s oil revenues will further increase in a foreseeable future.
Iran is now pumping 3.7 million barrels of crude oil per day in the post-sanctions era.
Tehran seeks to regain its market share of pre-sanctions levels of 4 million bpd.
India‘s annual oil imports from Iran surged to a record high in 2016 as some refiners resumed purchases after the lifting of sanctions against Tehran, according to ship tracking data and a report compiled by Thomson Reuters Oil Research and Forecasts.
The sharp increase propelled Iran into fourth place among India’s suppliers in 2016, up from seventh position in 2015. It used to be India’s second-biggest supplier before sanctions.
India import 473,000 barrels per day (bpd) of oil from Iran in 2016
For the year, the world’s third biggest oil consumer bought about 473,000 barrels per day (bpd) of oil from Iran to feed expanding refining capacity, up from 208,300 bpd in 2015, the data showed.
In December, imports from Iran trebled from a year earlier to about 546,600 bpd.
In 2015 refiners slowed purchases due to sanctions which choked payment routes, insurance and halved Iran’s exports.
“In most of 2016 there was a fight among Gulf producers to increase their market share and lifting of sanctions against Iran has intensified that fight,” said Ehsan ul Haq, senior analyst at London-based consultancy KBC Energy Economics.
In April-December, the first nine months of this fiscal year, Iranian supplies to India averaged a record 530,300 bpd, up from about 400,000 bpd before sanctions tightened against Tehran.
India’s 2016 Iranian oil imports were the highest in at least six years, according to the Reuters data.
Government data going back over a longer period shows the average was the highest since the 2001-02 fiscal year.
Overall, India imported 4.3 million bpd oil in 2016, up 7.4 percent from the previous year.
Rising imports from Iran and Iraq lifted the Middle Eastern share in India’s crude diet to 64 percent in 2016, reversing a declines in recent years, partly due to rising prices for Atlantic Basin oil tied to Brent.
The average premium for Brent jumped against Dubai crude to more than $3 a barrel in 2016 from around $1.80 in 2015.
“In 2016 Iran ramped up its output to regain market share while Iraq segregated its production into Basra Light and Heavy to attract customers. Basra Heavy was sold at a discount, making it more attractive than rival grades,” said Haq.
Iran’s share of Indian oil imports surged to 11 percent in 2016 from 5 percent in 2015.
Saudi Arabia remained the top supplier to India last year followed by Iraq and Venezuela.
Imports from Latin America declined for a second year, with its share of imports shrinking to about 16 percent from 18 percent, while Africa’s share fell to about 15 percent from a fifth.
“Low oil prices brought down production in Latin America while Nigerian barrels were impacted by violence in the Niger Delta. Also falling US oil output impacted trade flows, with some Latin American and African oil finding a place in the US,” Haq said.
