EMEA News
April Iranian Fuel Oil Sales Five Times Higher than in 2012
Iran exported almost 8.7 million barrels of fuel oil in April, five times more than a year ago, despite Western sanctions designed to stop the country from profiting from its oil industry, Reuters reports.
The fuel oil sales brought in about $600 million for the country.
About 6 million barrels of the oil was sold through direct agreements between the National Iranian Oil Company (NIOC) and buyers.
The 280-cst oil is popular with Chinese refiners because it provides a high gasoil yield.
"This month NIOC has sold three cargoes directly into China," one North Asian trader said.
"The flow is obviously killing us because this is a lucrative market which everyone is trying to grab a share of.
"At this rate I'm going to have to go into a different business, because there is no way I can compete with their prices."
In addition to the direct sales, deals involving private trading companies based outside Iran accounted for 2.7 million barrels of fuel oil sold in April.
"The buyers include the world's biggest trading companies, international oil majors, and small one-man trading outfits," said one Middle East-based operations executive said.
"The buyer has no issues because his documents are not going to show the oil came from Iran."
Despite the rise in fuel oil sales, Western sanctions have cut Iranian crude oil sales in half.
In the first quarter of 2013, traders reported a significant impact on prices from Iranian fuel oil sold in Fujairah and Singapore.
