Apr 30 2012 |
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Asia-Pacific Refiners Slash Iranian Crude Imports
Asia-Pacific Refiners Slash Iranian Crude Imports
China’s and Korea’s crude imports from Iran plunged by 33% and 22% respectively in the first quarter, according to customs data. In March Korea imported 155,000 b/d – 40% down on last year. China’s quarterly average fell to 346,183 b/d and it slashed its March imports by half compared to the year before, due to disputes over contract terms. Tokyo’s customs data released on 26 April showed March imports from Iran at 355,400 b/d, down from 379,200 b/d in the same month in 2011. Japan, the third largest buyer of Iranian oil, will cut April loadings by nearly 80%. Turkey, which last year imported 177,000 b/d, also recently announced that it would make a 20% cut.
South Korea, which had previously committed to buy bigger volumes of crude from Iran this year compared to last year, has reversed its policy and is preparing to make sharp import cuts. The reduction will take effect this summer due to lack of insurance cover for tankers as Western sanctions kick in, according to Reuters . Hyundai Oilbank, one of Korea’s two buyers of Iranian oil, will stop lifting cargoes from June.
Iran exports 2.1mn b/d of crude – down from last year’s average 2.3mn b/d, according to Mohsen Qamsari, Director of International Affairs at the National Iranian Oil Company (NIOC). European Union sanctions banning the import of Iran’s oil take effect on 1 July. Nonetheless, Mr Qamsari said: “The crude oil market is a balanced market. If some sale cuts [happen] somewhere, some customers will be found somewhere else.”
Iran’s Minister of Petroleum Rostam Qasemi said on 19 April that Tehran had objected to OPEC about overproduction by some members, including Saudi Arabia. He said relations with Riyadh would be affected. Saudi Arabian Minister of Petroleum and Mineral Resources Ali Naimi has said the kingdom will meet any oil market shortfall – without referring directly to Iran. The UAE, Kuwait and Qatar have boosted exports to Asia-Pacific countries and Turkish Minister of Energy Taner Yildiz has met with energy ministers of the UAE, Iraq and Libya.
The economic toll of Western sanctions on the economy may impact the second round of Iranian parliamentary elections on 4 May. The first round weakened President Mahmoud Ahmadinejad as candidates allied to Supreme Leader Ayatollah Ali Khamenei gained seats at his expense.
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