EMEA News
Iran Fuel Oil Shipment to Asia Deferred
A Singapore-based trader says a National Iranian Oil Company (NIOC) fuel oil loading that was originally set for June and bound for Asia has been deferred for a later date, Reuters reports.
While NIOC's Singapore offices did not comment on the reports, traders purchasing Iranian fuel oil suggested that the delay could have been caused by an over-commitment in sales by NIOC.
NIOC is reported to have committed to several term contracts with international traders and others since sanctions were lifted, with Thomson Reuters Oil Research and Forecasts showing that total fuel oil exports have increased to approximately 1.27 million tonnes per month.
Further, NIOC monthly exports between May and June are said to have increased by 280,000 tonnes upon its entrance into the spot markets, which raised exports to an estimated 1.55 million tonnes per month.
"That's probably when they over-stretched themselves," said another Singapore-based trader.
NIOC is said to normally produce about 1 million tonnes of low-density fuel oil each month, including approximately 600,000 tonnes of its straight-run 280 cSt grade from Bandar Mahshahr and 400,000 tonnes of 380 cSt from Bandar Abbas.
However, since sanctions were lifted, fuel oil exports directly from Iran to Singapore are reported to have reached 688,000 tonnes, Reuters data shows.
In April, data provided to Ship & Bunker by Veritas Petroleum Services (VPS) showed a significant drop in cat fines in Fujairah's bunkers, along with an overall improvement in bunker quality at the port, coinciding with the post sanctions return of Iranian fuel oil to the local market.
