Iran Oil Exports to Hit Low of 810,000 bpd

Sanctions and Slow Oil Consumption in March

Iran's crude oil exports in March could fall to lowest levels since sanctions began last year. Reuters reported today that Iran’s oil customers will load 810,000 barrels per day (bpd) of crude in March. Last month, Iran exported an average of 1.1 million bpd.  

China, India, South Korea and Japan, Iran’s top four customers, are scheduled to load 703,000 bpd in March versus about 960,000 bpd a month earlier. The actual numbers may ultimately vary slightly.

Indian refiners struggling to find insurance coverage for processing imported Iranian crude was one of the factors for the drop. India is scheduled to lift 117,000 bpd in March versus 279,000 bpd a month ago. The country's biggest buyer of Iranian crude, Mangalore Refinery & Petrochemicals Ltd. (MRPL), has said it will have to stop its purchases.

South Korea may lift just 60,000 bpd. It cut shipments to meet the 20 percent target cut believed to be required to receive exemptions from U.S. sanction. 

Japan's loading may drop 20 percent to 148,000 bpd from 184,000 bpd, the lowest since September. But China’s imports will rise slightly in March, from 379,000 bpd from 354,000 bpd. Last year, China was importing 438,448 bpd. (Reuters, 11 March)

Global oil consumptions also slow down in March and could be an added factor is slowing down Iran’s exports this month.

File photo: Iran’s crude oil export terminal at Kharg Island (Getty Images)