Analyst rejects rumors of Iran's oil sale drop

Oil&Gas Materials 20 May 2019 16:34 (UTC +04:00)

Tehran, Iran, May 20


An oil analyst has rejected rumors of Iran's oil sale drop to less than 500,000 barrels, saying Iran has reserved millions of barrels in other countries for exports.

"What is being said about Iran's oil sale being dropped to less than 500,000 barrels per day is not true, since there is no need for Iran to load barrels from its shore,” an Iranian oil analyst Abdolsamad Rahmati said, Trend reports citing ILNA.

"The exports will be compensated through offering at energy exchange and from oil barrels that are reserved in some countries, therefore the market is not facing shortage of demand since Iran continues to sell oil," he said.

"Due to limitation in sea transportation of Iran's oil, the country can sell its oil via land roads or barter while it has reserved millions of barrels in other countries. It can also bypass sanctions via ship to ship," said the expert.

Referring to claims of Saudi Arabia replacing Iran's oil sale he said that there are reasons that Saudi Arabia is not able to replace Iran's place in oil market.

"First is that Saudi Arabia did not have consistent oil output of 11.5 million barrels per day, it only occurred twice. Saudi Arabia has cut the oil output due to recent OPEC agreement and reduced its production from 11.1 million barrels to 9.8 million barrels. So the constant production capacity of the country is around 10.5 million barrels," he added.

"Another reason is that travels will increase during summer and the gasoline consumption rise therefore the demands for oil would soar. Saudi Arabia has warm weather and requires high energy consumption for cooling systems, therefore it can only have enough for domestic needs and cannot increase exports," he said.