Iran's Oil Exports to Europe Reach Peak

A year after the signing of the nuclear agreement known as the JCPOA and the lifting of sanctions against the Islamic Republic, reports indicate that Iran's oil exports to Europe have peaked, reaching levels comparable to five years ago. According to Bloomberg, with the arrival of supertankers carrying Iranian oil in Europe in January 2017, Iran's daily oil exports to Europe reached approximately 622,581 barrels, the highest level in the past five years. The report, citing shipping statistics and tanker tracking, states that currently two Iranian supertankers carrying four million barrels of oil are en route to Europe. Recently, Reuters also reported that two massive Iranian tankers are headed to the Netherlands. This is the second oil shipment that Iran's tanker fleet has sent to Europe after the sanctions. The National Iranian Tanker Company recently sent an oil shipment to Spain. Reuters has also reported that international insurance companies are now insuring Iranian tankers without U.S. backing. Bloomberg notes that it is still too early to speak about Iran reclaiming European oil markets in the post-sanctions era, as most of the Iranian oil shipments that have reached Europe were loaded last month. According to Bloomberg, preliminary data suggests that Iran's oil exports to Europe may decrease to about 393,000 barrels per day next month. The Iranian Ministry of Petroleum also reported on Wednesday, February 25, that oil exports to Europe in the last month, December, increased by ten percent compared to November, reaching 767,000 barrels. However, Iranian statistics include gas condensates, which are a type of 'super-light' crude oil but are generally not counted in international crude oil export statistics. An official from the Iranian Ministry of Petroleum told Bloomberg that the majority of Iran's oil exports go to Spain, Greece, and Italy, which are the country's main customers, and that heavy oil has been the primary export. According to him, Iran's light oil is mostly exported to Northwestern European countries in single shipments. The report adds that France has become Iran's largest oil customer, with one-third of Iran's total oil exports to Europe going to this country (Total company). An oil market source informed Bloomberg that oil exports from Saudi Arabia and Iraq to Europe have decreased. Reuters also reported on Thursday that Saudi oil production has been reduced from about 10.5 million barrels to below ten million barrels per day. OPEC members have committed to reducing their production by 1.2 million barrels starting January 1, bringing it to 32.5 million barrels per day. Iran is exempt from this reduction.