Iran's Oil Exports to Four Main Asian Customers Decline

Iran's total oil exports to its four main Asian customers reached their lowest level in two years last month. According to a report published by Reuters on Monday, December 9, these four Asian customers imported a total of 803,674 barrels of oil per day from Iran in October, reflecting an 8.5% decrease compared to the same month last year. This volume of exports is the lowest since October 2013. Reuters notes that China, India, Japan, and South Korea had increased their imports from Iran to over 1.2 million barrels per day in May, but this figure dropped back to around 1 million barrels in July and has been gradually declining. The countries importing oil from Iran are required to maintain their imports at the level of one million barrels per day until sanctions are lifted. Iran and six world powers reached a comprehensive nuclear agreement in July, under which sanctions related to Iran's nuclear program are to be lifted if Iran complies with the commitments outlined in the JCPOA. Before sanctions, Iran exported up to 2.5 million barrels of oil per day. It is expected that Iran's sanctions will be lifted in the first half of next year. According to Reuters, the top three customers of Iranian oil have reduced their imports this year, while South Korea, as the fourth largest customer, has slightly increased its purchases. China, Iran's largest oil customer, received an average of 536,500 barrels per day from Iran during the first ten months of this year, showing a decrease of about 2% compared to last year. India has reduced its imports from Iran by nearly 22%, bringing it down to 212,600 barrels per day. Japan's oil purchases have also decreased by nearly 2%, reaching 170,000 barrels per day. Meanwhile, South Korea has increased its imports from Iran by over 2% to 124,000 barrels per day. Overall, Iran's four major Asian customers bought a little over 1 million and 43 thousand barrels of oil per day from Iran from January to the end of October, reflecting a 6.5% decrease compared to last year. Iran claims that as soon as sanctions are lifted, it will increase its oil production and exports by half a million barrels per day, and this figure will reach 1 million barrels six months after the sanctions are lifted. Iran also held a conference on Saturday to introduce its new model of oil and gas contracts, aimed at attracting foreign companies to develop 50 hydrocarbon fields. Reuters also reported on Monday that global oil prices have decreased by up to 10% this month compared to last month, due to an increase in oil production exceeding consumption in global markets. The price of Brent crude oil in global markets has fallen below $45, and the price of West Texas Intermediate crude oil has dropped below $42.