Iran’s President Masoud Pezeshkian has urged OPEC members to unite against possible U.S. sanctions after U.S. President Donald Trump said he will drive Tehran’s oil exports to zero.
Iranian crude oil exports currently stand at ~1.5 million barrels per day, with the majority going to China.
Back in July, Trump promised in his Republican National Convention speech to reduce Iranian oil exports. He said he had previously achieved this objective by linking it to trade; “I told China and other countries, if you buy from Iran, we will not let you do any business in this country and we will put tariffs on every product you do send in of 100% or more.” According to StanChart, Iranian oil is likely to play a key role in Trump’s wider China trade policy agenda. China has been importing Iranian oil indirectly via proxies. According to StanChart, crude oil imports from Malaysia clocked in at 1.456 million barrels per day (mb/d) in June, the second-highest monthly average on record. The commodity experts pointed out that Malaysia’s crude oil output is about 0.35 mb/d while exports usually average 0.2 mb/d, implying that the vast majority of the oil that China imports from Malaysia was not produced in the country. According to multiple media sources, the transfers involve a dark fleet consisting of a group of aging tankers that rarely have an identifiable insurer. These transfers can be hazardous, including the danger of spills and collisions, with so many low-quality tankers massed in a narrow trade route with their transponders off. For instance, two such vessels caught fire off Singapore after a collision in July.
Nick Note: let’s get real here, everyone is getting hysterical over trump putting sanctions on I ran. Which he keeps saying he really really doesn’t want to do. but Iranian oil exports to mostly China is only 1.5 million barrels a day.Iit’s nothing it’s not even a factor in the marketplace. Its is a rounding error at best. The Russians are sneaking out enough extra oil to cover any Iranian loses. Us oil producers are going Gaga crazy to increase production. Canada wants to get oil as much as it can as soon as you can to market. and so does Mexico. Inventory has been building the last three weeks. We are out of the prime time heating oil season. And for sure Trump does not want to go to war with Iran. But he’s as serious as a heart attack when he tells them look you can do no nukes. If you get a nuke we’re going to blast you to smithereens. Israel is like an attack dog that smells raw meat. They would love nothing better than to get the go ahead to send them to their virgins. So to be clear here Iran oil is not coming out of the market. Canadian Oil is not going to come out of the market. Mexican oil will be delivered.