Thursday, 31 January 2013

Iran boosts oil export despite sanctions

Economic interest remains most important for the countries around the world, irrespective of their being or not being part of any bloc or pressure group. This seems omnipresent when one looks at the developed countries buying oil from Iran, and defying economic sanctions. This leeway was initially given by the United States to a few countries but others are also joining the exempt elites.

In one of its latest reports Reuters said, “Iran's crude oil exports in December leapt to their highest level since European Union sanctions took effect last July, analysts and shipping sources said, as strong Chinese demand and tanker fleet expansion helped the OPEC member dodge sanctions.”

According to the report, oil exports from Iran rose to around 1.4 million barrels per day (bpd) during December 2012. Western sanctions had halved Iran's oil exports during 2012 from 2.2 million bpd in late 2011. But continuous robust demand from top buyer China and others such as India and Japan, as well as the purchase of new tankers, allowed Iran to boost exports late last year.

According to Reuter report Iran shipped more than 1.4 million bpd of crude oil in December and there are indications that exports would remain around the same level during January-March quarter of 2013.

This represents an increase from a low-point of less than 900,000 bpd in September and suggests monthly revenues worth approximately $4.7 billion based on December Brent prices.

One of the factors helping Iran to boost its oil export was purchase of tankers from China, which enabled it to ship more oil, even if shipping companies from other countries were not willing to carry the load.

This has taken some pressure off Iran and facilitated tanker traffic and analysts foresee further increase in oil export to China.

It is also believed that the rise in oil exports from Iran to nearly 1.4 million bpd was the result of traditional buyers finding new ways to secure insurance of oil being carried by the Iranian tankers.


  1. I am inclined to post a comment by Naeem Baig and I quote "Shabbir Kazmi sahib, a classic example of an excellent commercial deal for Economic Development. China and Iran both are benefiting from it. China sold oil tankers to Iran and activated its ship building industry ( Value Added) to boost its economic development. Now buying oil from Iran to off set the price of tankers. The mechanism have secured energy supplies to China along with the repayment of original capital and mark up on supply of tankers. On the other hand Iranian sea going transport fleet has been augmented for delivery of oil and oil exploration industry to produce more oil."

  2. Nasim Baig Sahib you sound a typical Pakistani obsessed with the habit of flattering others on their intelligence but never able to exploit an opportunity when offered. Don’t you remember when Iranian President came to Pakistan he offered US$250 million to finance Pakistani part of gas pipeline. Pakistani rulers didn't accept this because of being under extreme pressure of United States, a country for which Pakistan has been fighting a proxy war in Afghanistan for more than four decade.