The coronavirus crisis and the US sanctions have pushed Iran’s oil exports to sink to a record low. Down from 287,000 bpd in March, exports averaged 70,000 bpd in April.
A reduction seen in exports from Iran, which is driven by lower Chinese purchases, chief executive of Petro-Logistics said. Any improvement is not yet seen in Iranian exports in May.
Government lockdowns to contain the coronavirus triggered the plunge in oil demand. Buyer choice has been increased due to the slide in prices. To find customers willing to take the oil from the country is more difficult as the US two years ago reimposed sanctions.
Iran and Venezuela, which is also under sanctions, have had to pay commission to those that buy and sell their crude as well as compete with discounts offered by other producers like Saudi Arabia.
Based on the latest figures showing March arrivals, China’s official buying of Iranian oil is now at a record low. Syria remains a customer, while Data on Refintiv Eikon showed other cargoes sail without destinations added.
