Iran’s oil exports lowest since early 2016

Iran, Oct. 2, 2018 - Prior to the implementation of U.S. oil sanctions scheduled for November 4^th, the Iranian regime’s oil exports reached its lowest rates in the past two and half years, according to Bloomberg news agency.

According to agencies monitoring oil shipments, Iran’s crude oil and gas condensates exports in September fell to 1.72 million barrels per day (bpd). This indicates a 260,000 bpd decrease and are the lowest numbers since February 2016.

Reports also indicate India has no intention of purchasing oil from Iran in November. India joins a list of various countries, including South Korea and Japan, declaring their cooperation with U.S. sanctions.

France, the Netherlands and South Korea have not purchased any oil from Iran during the past two months. Iran’s oil exports to Italy and the United Arab Emirates have dropped.

Iran’s oil exports will most likely decrease to less than 2 million barrels per day, according to a report issued by a Commerzbank AG analyst.

It is worth noting that the United States aims to decrease the Iranian regime’s oil exports to zero. On this subject, Brian Hook, head of the Iran Action Group in the U.S. State Department, has shed light on Washington’s objective.

The United States seeks to increase oil sanctions on the Iranian regime to zero their revenues from this source. Washington seeks to decrease all disruptions on the world market and make certain enough capacity exists to produce more oil for international reserves.

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Iran’s oil exports dropped in May according to the assessment provided by companies monitoring oil tankers across the globe. This indicates how the threat of U.S. sanctions is already forcing customers of Iranian oil to have second thoughts.

Statistics provided by Reuters show Iran’s crude oil export in May reached 2.5 million barrels per day, indicating a 100,000 bpd drop. Financial sanctions will prevent further oil trade with the Iranian regime, especially considering the fact that banks are becoming increasingly concerned.

It is expected that all of Iran’s oil and gas exports to Asia and the Europe will nosedive to 1.96 million bpd, reports indicate. Asian customers purchasing oil from the Iranian regime have already decreased their purchases from Iran by one third. Japan will not be receiving any oil from Iran this month.

Iran’s oil export plunge comes at a time when the regime’s Oil Ministry has decreased prices for its Asian customers, especially India. In addition to discounts on the price of oil, the Iranian regime is also providing discounts to India on oil shipping prices.

Iran’s oil export to Asia has already dropped to 1.12 million bpd this month, registering the lowest amount from 2015 to this day. The highly flawed Iran nuclear deal, formally known as the Joint Comprehensive Plan of Action (JCPOA), was signed in July of that year.

The “Shana” news agency, associated with the Iranian regime’s Oil Ministry, reported all of Iran’s crude oil and gas exports last month at 2.6 million barrels.

However, Reuters’ assessment places the actual export figures at 252,000 lesser than Shana’s numbers. The U.S. Energy Information Administration has estimated Iran’s oil production at 3.85 bpd.

A variety of European and even Russian companies are ending their trade relations with Iran as intensifying U.S. sanctions against the Iranian regime kick in this month, and the three and six-month deadlines are counting down for the return of secondary sanctions.

Following the U.S. pulling out of the JCPOA, Iranian regime foreign minister Mohammad Javad Zarif described the nuclear deal as a “dying patient.”

The U.S. Treasury Department statement following the JCPOA exit explains how Iran sanctions will return in 90 and 180 days. These measures include oil, airplane sails and currency sanctions.

U.S. National Security Advisor John Bolton also emphasized foreign companies have this time window to end their relations with the Iranian regime.