As the U.S. lifted sanctions on related cargoes and permitted more buyers, over
30 mln barrels of Iranian crude flowed to Asia in the past week, including
previously blocked cargoes and volumes from Kharg Island, Iran’s largest export
terminal in the northern Persian Gulf. The surge — pushing shipments to about
2.0 mln bpd, a recent high for Iran — mainly reflects a clearing of blocked
cargoes and may prove temporary; export rates could fall thereafter. In the near
term Tehran stands to benefit as expanded exemptions widen the buyer pool and
allow it to raise sales with smaller price discounts.
