Iran's Oil Sales Decrease to 830,000 Barrels Per Day

Iran's oil exports have declined for the third consecutive month, with crude oil sales in October dropping to 830,000 barrels per day. According to a report by Reuters on Tuesday, October 14, the oil shipments sold in October are scheduled to be delivered to customers over the next two months. This figure is 14% lower than in September and the lowest since March. In March, India and Japan had halted their crude oil imports from Iran to comply with their commitments to maintain the cap on Iranian oil purchases under U.S. sanctions. Reuters, citing statistics and statements from informed sources and preliminary tanker movement data, reports that the continuous decline in Iran's oil exports, despite incentives such as price discounts over the past three months, indicates that Iran still faces challenges in increasing crude oil exports after the nuclear agreement. The report adds that China, Iran's largest oil customer, has made the lowest purchases from the country in the past year this month. Overall, Iran's Asian customers, including China, India, Japan, and South Korea, purchased 720,000 barrels per day from Iran in October. Another oil customer of Iran, Turkey, bought 110,000 barrels per day from Iran this month. An informed source told Reuters that China has planned to buy only 370,000 barrels of crude oil from Iran per day this month. The country also plans to import 33,000 barrels of gas condensate (a type of ultra-light crude oil produced from gas wells) daily from September to March next year (spring). The report indicates that India, as Iran's second-largest oil customer, has reduced its oil imports from Iran by 20% compared to September, bringing it down to 170,000 barrels per day. Japan and South Korea also bought 100,000 and 80,000 barrels of crude oil from Iran daily in October, which is 10% and 20% less than the previous month. In total, Iran's oil sales to these four major Asian customers in October reached 720,000 barrels per day, which is 12% lower than the previous month. Iran and six world powers reached a comprehensive nuclear agreement in July this year, which raised the possibility of increasing Iran's oil exports. However, it is expected that the lifting of sanctions on Iran will take until the first quarter of next year. Iran claims that as soon as the sanctions are lifted, it will increase its oil production by 500,000 barrels and will raise this figure to one million barrels per day within six months.