Iran and the Oil Hidden in Its Seas

One of the biggest secrets of the global oil market is the amount of oil that Iran has hidden in floating tankers. CNN reported that the volume of oil that Iran has stored and concealed is very important because after the lifting of international sanctions in the coming months, millions of barrels of Iranian oil will suddenly flood the global market. However, it should also be considered that the recent drop in oil prices to $43 per barrel, the lowest price for this product in the past six years, will definitely impact the amount of oil that Iran will export to the international market. Iran claims that it has not stored oil in tankers floating in the waters of the Persian Gulf, but no one believes this claim. Until recently, experts believed that Iran had stored between 30 to 40 million barrels of oil. However, the company Windward, which specializes in monitoring shipping activities, recently announced that the volume of oil stored by Iran in the Persian Gulf is about 50 million barrels, representing an increase of approximately 150% since April 2014. The Windward shipping control company, based in Israel, monitors all oil tanker shipments in the Persian Gulf, including those that have never left the region and are not heading to other destinations. The high volume of oil stored by Iran in tankers indicates that today, considering the slow growth of the global economy and the recent turbulence in China, the global market is facing an oversupply of this product. Tom Kloza, an international oil market expert, states: 'Iran is heavily reliant on oil sales revenue, and as soon as international sanctions are lifted, this country will flood the market with a large volume of crude oil.' It should be noted that the oil stored in tankers is extracted and refined and can be transferred quickly upon receiving an order. Tamar Esner, another oil expert, believes that 'Iran has tried to declare the volume of oil stored in tankers to be less than the actual amount to avoid impacting global oil prices.' CNN adds that the recent nuclear agreement with the international community has a decisive impact on Iran's future and its oil sales. However, the lifting of foreign sanctions initially requires the approval of this agreement by the U.S. Congress and the implementation of the commitments outlined in the agreement by Iran. According to assessments by some international energy institutions, if oil export sanctions are lifted by mid-2016, Iran could increase its oil export volume by 370,000 to 500,000 barrels. Therefore, contrary to many OPEC member countries, the future of oil exports for Iran is positive. Expert assessments of the amount of oil that Iran has stored in the Persian Gulf have increased in recent months. In addition to Windward estimating Iran's stored oil at about 50 million barrels, Platts has also recently reported that the volume of these oil shipments is about 53 million barrels. According to this institution, several other large tankers have recently joined the fleet of vessels carrying Iran's stored oil in the Persian Gulf. The international oil market does not believe the figures announced by the Iranian government. International experts believe that in most cases, oil-producing countries publish inaccurate figures to control their foreign transactions. Until recently, only the intelligence agencies of countries around the world used the information collected by Windward, which monitors maritime transport, to combat terrorism or smuggling. However, in recent years, financial and investment institutions seeking profitable transactions have also utilized the informational services of this company. Nevertheless, the officials of this company emphasize that one can never completely rely on information regarding oil production and supply because many producing countries, including Iran, are highly secretive in this regard.