Iran's Oil Exports to Asia Rise Above One Million Barrels Again

Iran's crude oil exports to Asian countries have once again surpassed one million barrels per day after two consecutive months of decline. In the last month, November, Iran's Asian customers purchased an average of 1 million and 70 thousand barrels of crude oil daily from Tehran. According to Reuters, citing industry sources and ship tracking, Iran's oil exports in the last month showed an increase of about 11% compared to November 2013. Meanwhile, total oil exports from Iran to Asia, including China, India, Japan, and South Korea, reached 1 million and 110 thousand barrels per day in the first 11 months of this year, indicating an increase of about 20% compared to the same period last year. Between January and November of this year, China imported over 544 thousand barrels of oil from Iran daily, which is about a 30% increase compared to the same period last year. India also increased its imports by about 38%, reaching 270 thousand barrels, while Japan and South Korea reduced their imports from Iran by 3.5% and about 7%, respectively, during this period. Last November, Iran and six world powers reached a temporary nuclear agreement that led to an increase in Iran's oil exports. However, Reuters reported on Friday, December 26, citing industrial sources, that the uncertain status of nuclear talks could negatively impact Asian countries' oil imports from Iran. Last month, Iran and six world powers extended the temporary agreement until July 1, 2015, following a failure to agree on a comprehensive nuclear understanding. Before the comprehensive sanctions from Europe and the U.S., Iran exported 2.2 million barrels of crude oil daily, which fell to 928 thousand barrels per day in the 11 months of 2013 (before the temporary nuclear agreement). According to the Geneva agreement, the U.S. committed to stopping further pressure on Iran's oil customers but expected Iran's oil exports to remain around one million barrels per day. Reuters writes that the approximately 50% drop in oil prices since last summer might compel Iran to agree to a comprehensive nuclear deal. Global oil prices were around $110 in early summer, but the latest Brent crude price data shows that it is about $60.66 for delivery on February 15, 2015, which is an increase of about 44 cents from Thursday. Early last week, oil prices in global markets saw a slight increase, but they fell again on Wednesday and improved slightly on Friday.