News / Energy

Iran’s oil exports to Asian clients up 61%

Wednesday, 31 August 2016 1:43 PM [ Last Update: Wednesday, 31 August 2016 5:28 PM ]

Figures have revealed an increase of 61 percent in Iran’s oil exports to several of its key Asian clients.

Latest figures show a major rise in Iran’s oil exports to Asia in a yet another indication that the country is moving faster toward its goal a to reach pre-sanctions production levels.

Reuters in a report said Iran’s export of oil to India, Japan and South Korea stood at an average of 1.64 million barrels per day (mb/d) in July. The figure shows an increase of 61.1 percent compared to the same period last year. It also marked the country’s biggest percentage gain since April 2014, Reuters added.

Imports by South Korea (0.29 mb/d) jumped more than fourfold last month, while India's imports (0.52 mb/d) more than doubled from a year ago.

Japan’s imports stood at 0.25 mb/d – some 62 percent higher than last July. China imported 0.56 mb/d which was the largest volume of imports among the four Asian clients of Iran’s oil. Nonetheless, the figure showed a minor decline of 1.7 percent compared to last year.

Iran’s First Vice President Es’haq Jahangiri said in early August that the country’s oil exports had increased to as high as 2.5 million barrels per day. The landmark development was seen as a fresh sign that the country has already regained a crucial global oil market share that it had lost as a result of multiple years of sanctions.

In mid-January, a series of economic sanctions that had been imposed on Iran for multiple years were removed after a deal between the country and the P5+1 – the five permanent members of the UN Security Council plus Germany – was implemented.

The sanctions barred foreign investments in the Iranian oil industry and also imposed a low ceiling of 1 million bpd on the country’s oil exports.

Before the sanctions were lifted, Iran said it had made the necessary preparations to boost its oil production capacity to pre-sanctions levels.

Iran’s Petroleum Minister Bijan Zangeneh had repeatedly emphasized that the Islamic Republic was determined to regain its share of the oil market that it had lost as a result of the sanctions within a short period of time.

In early June, Reuters reported a rapid surge in Iran’s oil exports. It said shipping data showed the country’s oil exports were close to pre-sanctions level of 2.5 mb/d, stressing that it had been able to improve its exports capabilities at a much faster pace than anticipated.

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