DUBAI, July 17 Iran is set to arrest a slide in
oil shipments in July as China increases imports to a record
high to amount to more than half Iran's crude exports, an
industry report said.
Iran's oil exports are expected to average 1.084 million
barrels a day in July, little changed from 1.094 million bpd in
June, in what Geneva-based consultancy Petrologistics said was a
Tehran's oil exports halved in the four months from February
to June because of U.S. and European Union sanctions aimed at
discouraging what the West fears is an Iranian programme to
develop nuclear weapons.
Only four countries are expected to import Iranian oil in
July -- China, India, Japan and Taiwan, Petrologistics said,
although it is possible a cargo could be diverted to Turkey.
An EU embargo on oil purchases and shipping insurance came
into force at the start of July, and non-EU Turkey has also cut
back sharply on Iranian oil.
China is now easily Iran's biggest customer and has
negotiated big price discounts. It is expected to increase
imports to 587,000 bpd in July, or 54 pct of Iran's total
exports, from 428,000 bpd in June and 478,000 bpd on average on
2011, the Petrologistics report said.
India's Iran oil purchases in July are also expected to
rebound to 335,000 bpd from 264,000 bpd in June, a little above
its average imports last year of 326,000 bpd.
Petrologistics said privately held Essar Oil was
responsible for the bulk of the import increase. Essar is not
restricted by the Indian government's shipping and insurance
regulations on Iran.
Taiwan will take one cargo, equivalent to 65,000 bpd, having
imported nothing since March. It averaged only 28,000 bpd on
average in 2011.
The increases by China and India contrast with Iran's two
other big Asian importers in previous years, Japan and South
Korea. Japan is expected to import 98,000 bpd this month or
little more than a third of last year's purchases. South Korea
cut imports from Iran to zero in July after failing to secure
The sanctions have forced Tehran to store crude in tankers
at sea to avoid steep cuts in oil production.
But floating storage of crude and condensate dropped to 34.4
million barrels in June -- equal to 17 very large crude carriers
-- from a peak of 42.8 million in May, Petrologistics said.
(writing by Dmitry Zhdannikovm editing by Richard Mably and