EMEA News
Iran Fuel Oil Deal with Turkish Company "Expected Soon"
An unnamed Turkish company is in negotiations to import fuel oil from Iran, and a signed agreement with a "serious new customer" is expected soon, according to Iranian media.
Iran is said to have 41 million litres of excess fuel oil, due in part to sinking fuel oil consumption in the country.
The country's oil industry has also been subject to various Western sanctions, although reports from earlier this year indicate the export restrictions have had questionable impact on its fuel oil activity, with one source going as far as saying the economics of UAE's fuel oil and bunker markets "just don't work" without Iranian oil.
Iran reportedly exports between 200,000-600,000 metric tonnes (mt) of fuel oil per month depending on domestic consumption, which dropped by 25 percent to 25.5 million litres between March 20 and June 20.
As a result, Iran is said to be offering its excess fuel oil to passing ships in the Persian Gulf and the Strait of Hormuz, and is in talks with a number of countries to acquire export deals.
The report also suggested that while Iran has long-term contracts to sell fuel oil with the Persian Gulf littoral states, including the port of Fujairah, a new marketing effort has begun to increase sales of Iranian product.
In June, Iran told OPEC to "open space" for the country's increased oil production in anticipation of sanctions being lifted in the near future.
