Iran’s oil exports to China to reach record levels
Speculations are rising that Iran’s oil exports to China would rise to the highest levels over the past 11 months in August.
Reuters in a report highlighted speculations that the rise in Iran’s exports to China would follow a recent decision by the Islamic Republic to cut the prices for its heavy crude oil.
Crude and condensate exports from Iran to China are set to hit 733,000 barrels per day (bpd) in August, wrote the report. This would be the highest since September, driven by an 11 percent rise in crude volumes month-on-month, Reuters added, quoting sources with knowledge of the tanker loadings.
Iran may continue to win Chinese market share in the second half of 2017 as production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and falling Latin American output have tightened heavy crude supplies.
Chinese buyers are also importing more Middle East crude as the Dubai price benchmark has weakened against Brent, a second source told Reuters.
To attract buyers, Iran cut the official selling prices of heavier grades Iranian Heavy and Forozan Blend in the third quarter by 2 cents a barrel from the previous three months, added the report.
However, overall Iranian crude exports in August for Asia are set to fall to 1.3 million barrels per day (bpd), down 0.3 percent from July.
Iran’s global combined crude oil and condensate exports may total 2.37 million bpd this month, down 4 percent from a year earlier, the source said, which would mark the first year-on-year decline in four months, Reuters reported.