Iran Resumes Oil Exports to Greece

Iran announced that it has resumed its oil exports to the European country of Greece, exporting 60,000 barrels of crude oil per day. Mohsen Qamsari, the director of international affairs at the National Iranian Oil Company, stated on Friday, April 21, that based on an agreement with the Greek company Hellenic Petroleum, crude oil exports to Greece have restarted. Following global sanctions against its nuclear program, Iran lost its oil market in Europe, but with last year's agreement with world powers, it is attempting to regain a foothold in Europe. Greece is seen as a gateway for Iran's re-entry into the European market, as the first oil contract with a European company post-nuclear agreement was signed with Hellenic Petroleum. According to the Iranian Ministry of Oil, 'Hellenic Petroleum, as the largest oil refiner in Greece, has been a traditional customer of Iranian oil, and based on the agreement made at the end of March 2016, the first shipment of crude oil was delivered to this Greek company.' Before the global sanctions, Iran exported 120,000 barrels of crude oil to Greece daily, a figure that has now decreased by 50%. However, Greece is not the only European country to resume oil trade with Iran; France and Spain have also become customers. With contracts signed with Total of France and the Spanish refinery CEPSA, Iran expects to export 250,000 to 300,000 barrels of crude oil to Europe daily. Although Iran emphasizes increasing its oil production and exports, its crude oil production reached 3.3 million barrels per day last winter, which is still about 900,000 barrels less than pre-sanction levels. Tehran claims it aims to raise its oil production to 4.2 million barrels per day. In this context, Iranian oil production is expected to return to pre-sanction levels 'within two months.' Iran faces the challenge of 'finding ships' for its increasing oil exports, while non-OPEC production has raised oil prices.