6% Decrease in Asian Oil Imports from Iran

Four of Iran's customers in Asia, including China and India, reduced their oil imports from Iran by 6% last month compared to September 2014. According to a report on Friday, November 8, by Reuters, China, India, Japan, and South Korea averaged daily imports of 1.02 million barrels of oil from Iran in September, the previous month. The report, based on ship tracking data and customs statistics, states that Iran's Asian customers purchased slightly more than 1.07 million barrels of crude oil per day from Iran during the first nine months of this year. Turkey, another oil customer of Iran, is said to import about 100 to 110 thousand barrels of crude oil from Iran daily. Reuters writes that although Iran and six world powers reached a nuclear agreement in July of this year, the Islamic Republic has not been able to increase its oil exports so far. The news agency adds that there is also less hope for an increase in Iran's oil sales until the sanctions against Iran are lifted next year. Western sanctions have reduced Iran's oil and gas condensate exports from 2.5 million barrels per day to the current level. Iran claims that as sanctions are lifted, it will increase its oil production by 500 thousand barrels per day and that this figure will reach one million barrels per day within six months thereafter. However, the International Energy Agency, in its latest assessment, believes that Iran will only be able to increase its oil production by 400 to 600 thousand barrels in the second half of next year. Reuters also refers to President Hassan Rouhani's statement on Tuesday that sanctions against Iran will be lifted by the end of this year, noting that the date Rouhani announced is considered 'very optimistic' by experts, and that further steps must be taken by Iran to lift the sanctions. Overall, Iran's oil imports by Asian countries decreased by more than 6% in the first nine months of the year compared to last year. China reduced its oil imports from Iran by more than 17% last month, bringing the figure down to 416,450 barrels per day. In total, China has decreased its oil imports from Iran by 2% over the first nine months of the year. India, Iran's second-largest customer, also reduced its oil imports from Iran by 3.4% last month and has decreased its overall oil purchases from Iran by up to 20% this year. Japan also reduced its oil imports from Iran by 15.5% in September, averaging about 172 thousand barrels per day from January to September, which is 1.3% more than in 2014. Finally, South Korea, Iran's fourth-largest oil customer, increased its oil imports from Iran by 47% last month, but overall has decreased its oil purchases from Iran by 3.3% this year.