Iran's oil exports hit 6-year high

Iran sold the most oil in the first quarter since 2018, despite Western sanctions.

Iran sold an average of 1.56 million barrels of oil per day in the first quarter, the highest since the third quarter of 2018, energy data provider Vortexa said on April 17. Almost all of the oil went to China.

Tehran’s continued crude exports underscore the difficulty the US and EU face as they seek to increase pressure on the country following last weekend’s Israeli raid.

“Iran knows how to circumvent sanctions. If the Biden administration really wants to make an impact, it has to shift its focus to China,” said Fernando Ferreira, director of geopolitical risk at energy consultancy Rapidan Energy Group.

Crude oil is transferred between two oil tankers flying the flags of Iran and Liberia off the coast of Greece. Photo: Reuters — Crude oil is transferred between two oil tankers flying the flags of Iran and Liberia off the coast of Greece. Photo: *Reuters*

On April 17, G7 finance ministers issued a joint statement condemning Iran’s attack on Israel and pledging to coordinate sanctions against Tehran. This week, US Treasury Secretary Janet Yellen also acknowledged that Iran “clearly” continues to export oil, and that they “have more work to do” to curb this activity.

However, according to data firm Kpler, nearly all of the Middle Eastern country’s oil sales this year have gone to China. Therefore, the tightening of sanctions on the Middle Eastern country’s oil has destabilized the oil market and threatened US-China relations.

About 10% of China’s oil imports come from Iran. But refining is not done by large state-owned energy companies, but by small private plants.

The US has recently started targeting vessels suspected of carrying Iranian oil, said Armen Azizian, senior analyst at Vortexa. In February, it sanctioned two vessels and in April, 13. However, Vortexa said the impact on the country's oil exports was "very small".

According to Azizian, the size of the Middle Eastern nation’s fleet of oil tankers has increased by 20% over the past year, to 253. The number of supertankers, which can carry up to 2 million barrels, has also doubled since 2021.

Last month, Iran’s oil minister Javad Owji said the country earned more than $35 billion from oil exports last year. In a separate event, he said that while many countries want to block the flow of Iranian oil, “it can still be exported anywhere, at a small discount.”

Ha Thu (according to Financial Times, Reuters)

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