EMEA News
Iran's Exports to Poland & India Contribute to Market Share Recovery, While Saudis Slash Oil Prices
News of increased oil exports to India and the first post sanctions Iranian crude being sold to Gdansk are being seen as further indications that Iran is determined to regain its international market share, despite widespread contention that the Islamic republic hasn't the wherewithal to expand its share much further.
Data obtained by Reuters shows that India's Iranian oil imports rose about 39 percent in June year on year, taking in about 381,500 barrels per day (bpd).
By comparison, India imported about 274,800 bpd from Iran in June of 2015, and in the first half of this year Iran oil imports surged by about 58 percent to about 342,000 bpd.
This means India's oil imports from Iran are set for a seven-year high in the year that began April 1, with state-owned and private refiners buying at least 400,000 bpd cumulatively; Essar Oil, a private refiner, was Iran's top client in June, importing about 180,600 bpd; Mangalore Refinery and Petrochemicals Ltd. came second with about 69,000 bpd; and Reliance Industries Ltd. was third with about 64,000 bpd.
Meanwhile, trade sources reported that the Atlantas Very Large Crude Carrier was heading to Poland's Baltic Sea port of Gdansk this week after being filled with 2 million barrels of crude at Iran's main oil export terminal Kharg Island on June 27.
Although it is unclear whether the buyer was Polish refiners PKN Orlen or Grupa Lotos, or whether the oil would be shipped to Germany, which is connected by pipeline to Gdansk, Reuters noted that regardless, "the cargo is the first Iranian crude sold into this part of the Baltic Sea market since January's lifting of sanctions, intensifying the battle for market share between top producers including Russia and Saudi Arabia."
The news agency went on to state that Iran has also "been hot on Riyadh's heels in its efforts to get its old customers back and find new ones" and that "oil major Shell resumed Iranian oil purchases this month."
But the Saudis are hardly taking all this lying down: state-owned Saudi Arabian Oil Co. (Aramco) announced it is lowering its official selling price for Arab Light crude to Asia by 40 cents to a premium of 20 cents a barrel above a regional benchmark; all other official selling prices for Asian clients have also been reduced, the biggest cut being by 90 cents a barrel for Extra Light, to $1.70 a barrel above an Oman/Dubai benchmark.
Last month, the International Energy Agency mused that Iran's full return to the international market is questionable, with the main stumbling block being its need for billions of dollars of investment and foreign technology to expand and modernize its aging wells, which were already performing below standards prior to the sanctions,
