Posted on 07/06/2023 5:29:46 AM PDT by NautiNurse
Iran’s oil exports have hit a five-year high in recent months as the country sells more to China and other countries, adding large volumes of discounted crude to a global energy market already struggling amid concerns over demand.
The surge in Iran’s oil supply threatens to upend efforts by Saudi Arabia and other major crude producers to prop up prices by cutting output. Oil’s value has fallen by about a fifth since late last year on expectations of a slowing global economy and a glut of cheap Russian cargoes.
It also shows how Iran is increasingly circumventing U.S. sanctions as the Biden administration quietly resumes talks with Tehran in a bid to win the release of American prisoners held by the Islamic Republic and curb its growing nuclear program.
[Snip]
While the scale and final destination of Iran’s oil sales are difficult to gauge, given their often covert nature, data from several firms monitoring the global energy trade indicate that China remains its top customer. Beijing directly imported 359,000 barrels a day of Iranian oil in May, up from about 266,000 barrels in the same month last year...
[Snip]
Among the other top buyers of Iranian crude are Syria and Venezuela, both of which are under American sanctions. Iran is also seeing growing interest for its oil from other buyers in Latin America and Africa, Iranian traders say.
[Snip]
(Excerpt) Read more at wsj.com ...
From your keyboard to God’s ears. May the black robe regiment rise.
We need men of God to lead more than ever before.
—”This is Joe’s chance to replenish the “EMERGENCY” fuel “
YES!
The little guy Hunter is now bouncing around in a rubber room, due to his lost emergency fuel!
The initial destination is easy. The final destination may not be.
Venezuela is importing Iranian oil only to reexport it. It’s the same concept as money laundering.
Well played!
Emphasis on “may not be easy” meaning not impossible. Intelligence, extrapolating data, other methods would lead us to the end consumer, which won’t be a surprise being one of the worlds bad actors.
Venezuelans mix the lighter Iranian oil with their heavy crude to make it easier to refine
—”They also transload some of that oil from one tanker to another. “
Possibly but not probable, a much better return from selling the refined product that helps Indian employment, lowering the local cost of energy and reducing Indian inflation.
That in turn generates political favor for the owners of the world’s largest refinery; yes in India, IIRC Modi’s home state.
And all of this activity of below-market crude adds downward pressure to the world market. Causing further problems for Russian energy sales.
‘They lose money on every barrel sold, but make it on the volume!’
Not exactly, but valving off an active well is a bad idea.
Crude from different sources tends to have different chemical properties.
” No two crude oil types are identical and there are crucial differences in crude oil quality. The results of crude oil assay testing provide extensive detailed hydrocarbon analysis data for refiners, oil traders and producers. Assay data help refineries determine if a crude oil feedstock is compatible for a particular petroleum refinery or if the crude oil could cause yield, quality, production, environmental and other problems.”
https://en.wikipedia.org/wiki/Crude_oil_assay
The Biden gang could allow Alaska to drill and Texas to refine, but that wouldn’t punish them for voting for Trump. And that would displease the left.
Hilarious. Venezuela has the largest proven oil reserves of any country in the world -- larger even than Saudi Arabia. But it's also the worst quality crude ("heavy sour crude" in industry parlance) and only a small percentage of refineries, many of which are in the US, can handle it. And the Venezuelan oil industry is on the ropes because of socialist mismanagement and neglect.
I am sure you are correct.
I should stick to things I know something about. Instead of talking out my A$$.
I miss Thackney. He was formerly our FR expert on all things petroleum related. He taught me the difference between Light Sweet crude and Heavy Sulfur crude.
He was a Petroleum Engineer. Plus he knew all about the transport of oil by tanker, pipeline or donkey.
He may have passed because I have not seen him post in many years.
Based on my recollection from the articles I read over a year ago was that their first choice was to distill and sell refined products. However, the amount of oil India was buying from Russia greatly exceeded their refining capacity. It also greatly exceeded the potential usage in India.
So, they were brokering the oil to other entities. Many of which were not allowed to buy Russian oil.
In my business there has been various duties and quotas over the years on the import of Canadian lumber into the USA. About twenty years ago we had a quota. So, the sawmills were limited how much lumber they could ship without paying a major duty. So, they would sell FOB mill in Canada to remanufacturing plants and some Canadian wholesalers who also had quota.
They could buy at a large discount FOB mill NO quota.
It was like a license to print money for some companies.
They would bring lumber into their yard flip the paper wrap over and make out the paper work. There were thousands of trucks of lumber shipped in this way.
We called them THE QUOTA CHEATERS.
—” However, the amount of oil India was buying from Russia greatly exceeded their refining capacity. It also greatly exceeded the potential usage in India.”
India is currently importing <2 MMB/D from Russia and has a total refining capacity of 5.2 MMB/D.
Indian consumption ~4.7 MMB/D. https://t.ly/ed85I
“Oil refining capacity in India, the world’s third biggest oil importer and consumer, is at about 5.2 million bpd. Global oil producers see India as a stable outlet for their oil as it is expected to account for a quarter of global oil demand growth by 2040.” https://t.ly/v2jYS
Mostly by the intent of Russian oil sanctions, maintain volume, and depress prices.
Eat popcorn. Wait for the right moment to fill up your tank.
As a project manager for example, I always do my best to bring into the team people smarter than me. Someone always knows something better than me. I tap their experience within their niche and assemble their parts into the cohesive whole. No ego involved, I hope. Think of a symphony conductor.
Blissfully retired now and living in a mountain cabin…. Lol….
Cheers…
I think we know what Biden’s releasing of all thuse billions of dollars to Iran was really for.
Trying to prop up his economic disaster.
Saving the legacy of the Black president
Keystone II was designed to bring heavy sulfur Alberta crude to the refineries in Port Arthur, TX. Those refineries were in the process of upgrading and expanding to handle the extra crude. When Biden cancelled it, the expansion work stopped putting a lot of union democrat voters out of work. The unions are very powerful in that county.
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