Published on : Sep 14, 2015
Despite the final minute efforts to disrupt the consensus agreement regarding the nuclear harmony with Iran, the overall deal is a done deal. Market experts state that the question as to when the Iranian crude is expected to reach the global market is likely to be around for long. This might take years to be answered. Until a number of years before Iran can export oil at various platforms, this question is likely to be around.
The elating Iranian sanctions are likely to bring more oil to the market. Analysts have opined on the effect as well as the timing of the situation. Iran holds all the legal rights to export oil to certain countries. According to the statement by International Energy Agency in the month of June 2014, the exports from this country had increased by 28% that year.
Iran’s storage for crude oil is also discussed in the report. Several observers believe that the country currently stores a huge amount of crude at sea. However, disagreements arise on the quantity and quality that is expected to immediately sell out to the customers. Iranians have stored crude oil from as much as 51 mn barrels to as little as 7mn barrels.
Iranian crude oil storage is not reliably and publicly reported. The analysts estimate the total storage capacity by counting the crude oil tankers and how low the ships float in the water. Thus, the lower the ship floats the more oil it contains.
Several Iranian officials have also stated that the country will instantly ship hydrocarbon products as soon as the sanctions are released.
Regarding the quality of Iranian crude, some oil experts are raising questions whether the refineries are capable of processing a huge amount of stored Iranian oil. They have stated that condensate represents vast majority of hydrocarbon products in floating storage.