Iran tempts Europe with a sea of oil ready to be sent .. but …
Iran has significant volumes of oil in floating deposits that it could put on the market quickly should a deal with the United States be finalized.
In an update earlier this month, OilX said Iran has around 40 million barrels, most of which is likely condensed. Vortexa estimates Iranian crude in floating storage at 60-70 million barrels, while Kpler estimated it at 93 million barrels, Bloomberg reported Sunday.
However, the volumes would not be released immediately, as issues such as insurance and shipping would have to be resolved first. "Iran has amassed a sizeable flotilla of cargoes that could hit the market fairly soon," John Driscoll of JTD Energy Services told Bloomberg.
Currently, Iran and the United States are both considering the final version of an agreement proposed by the European Union, which acts as an intermediary in the negotiations.
According to recent reports, some issues have been resolved, but others remain and need to be resolved before a deal is finalized.
The Israeli newspaper Haaretz reported yesterday that it saw a copy of the draft proposal, which calls for the release of prisoners from Iran and, in exchange, the release of Iranian funds from international bank accounts. The Israeli newspaper wrote that Iran will be free to keep the uranium it has enriched so far, but will be banned from violating the nuclear deal.
A nuclear deal would mean the return of Iranian crude to international markets at a rate of around 1.3 million bpd, according to a recent Financial Times report. This would substantially lower oil prices, at least for a while, so much so that the Emirates said they were ready to ask for a drop in OPEC quotas.
Iran is keen to increase its crude oil exports but has signaled that it will not rush into a deal until its latest demands are met. Chief among these is ensuring that the agreement will survive during future US administrations. In short, Biden should also commit himself to a possible future Trump administration, and this point is not easy to resolve.
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The article Iran tempts Europe with a sea of oil ready to be sent .. but… it comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/liran-tenta-leuropa-con-un-mare-di-petrolio-pronto-da-inviare-ma/ on Mon, 29 Aug 2022 14:12:27 +0000.