EMEA News
Iranian Fuel Oil Exports Up, Affects Pricing in Asian Markets
Iran increased its exports of fuel oil to nearly 18 million barrels in the first quarter of 2013, amounting to about 200,000 barrels per day (bpd), which affected pricing in Asian markets, Reuters reports.
The exports represent a 74 percent increase from the same period last year and a 12.5 percent increase compared with the previous quarter, and comes despite Western sanctions aimed at curbing the Islamic Republic's oil revenues.
Direct sales of fuel oil by the National Iranian Oil Company (NIOC) to buyers stood at 7.8 million barrels, an Iranian shipping source told Reuters.
"We are seeing roughly steady shipments from Kharg Island monthly, it's done in 2 or 3 shipments," a source way quoted as saying.
Indirect sales involving independent trading companies and generally using ship-to-ship transfers in international waters, totalled about 9.75 million barrels.
Most of the "better-quality" Iranian product was sent to Singapore and Fujairah, and traders said it had affected fuel pricing in Asia leading to the price differential between 180 cSt and 380 cSt to hit a four year low of $1.25 on February 26, 2013.
"Because the market was oversupplied with high value blending materials like Iranian straight-run, there was a real disconnect between the 180 cst and 380 cst grades," a Singapore-based trader said.
In November, bunker traders in Fujairah said low-priced Iranian fuel was "killing" the local market, and observers have said Iran has been actively using Gulf middlemen to transport fuel in recent months.
Last month, U.S. officials sanctioned a Greek ship owner for helping to transport Iranian crude oil.
