TEHRAN (ISNA)- The easing of a ban on European insurance for shipments of Iranian oil may lift Iran’s crude exports to big oil buyers in Asia, including India and China.
The easing of EU shipping insurance sanctions was part of a deal on Sunday between Iran and six world powers to resolve Tehran’s nuclear program in exchange for limited sanctions relief.
“The relief in EU sanctions on oil shipping insurance is a big deal and creates the conditions to make it easier for Iran to get at least up to the sanctioned levels,” Olivier Jakob from Petromatrix energy consultancy said.
“A lifting of the insurance ban could free up some of Iran’s strained tanker fleet for increasing use in domestic floating crude oil storage,” Goldman Sachs said in a note.
Kevin Book, Managing Director at ClearView Energy Partners in Washington, said the apparent easing on insurance could provide for an increase of 200,000 to 400,000 bpd in Iranian exports, particularly to Indian refiners.
He also noted that the White House’s mention of a 1 million bpd limit was much higher than a recent estimate that Iran exported some 715,000 bpd in October, suggesting that the deal could mean a 285,000 bpd supply boost “relatively quickly.”