Iran
hopes to raise March oil exports on higher European
sales: sources
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[March 03, 2016]
NEW DELHI/DUBAI (Reuters) - Iran,
OPEC's No. 3 producer, is expected to raise its oil exports in March to
around 1.65 million barrels per day from 1.5 million bpd a month earlier
on the back of higher crude shipments to Europe, two industry sources
told Reuters on Thursday. State-run National Iranian Oil Co.
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(NIOC) is expected to ship around 250,000-300,000 bpd to Europe this
month after it finalised term deals with France's Total and Spanish
refiner Cepsa, effective from March 1, said the sources, who are
familiar with Iran's exports.
The French oil major has a contract to buy about 200,000 bpd, while
Cepsa's deal was for about 35,000 bpd, one source said. Total is
expected to lift at least 5 million barrels in March, the source
added. Litasco, the trading arm of Russia's Lukoil, Cepsa and Total
have become the first buyers in Europe after the lifting of
sanctions and lifted trial cargoes in February, trading sources told
Reuters.
Hellenic Petroleum, Greece's biggest oil refiner, has said it will
receive its first shipment of Iranian crude oil at the end of March.
Tehran is working to regain market share, particularly in Europe,
after the lifting of international sanctions in January. Oil exports
rose by 500,000 bpd to 1.5 million bpd in February, a senior NIOC
official said on Tuesday.
The sanctions had cut Iranian crude exports from a peak of2.5
million bpd before 2011 to just over 1 million bpd in recent years.
Tehran has said it would boost output immediately by 500,000bpd and
by another 500,000 bpd within a year, ultimately reaching
pre-sanction production levels of around 4 million bpd seen in
2010-2011.
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But even a gradual increase in its exports would come at a time of
global oversupply, with producers around the world pumping hundreds
of thousands of barrels every day in excess of demand. Oil prices
are near 11-year lows at around $37 a barrel.
Saudi Arabia, Qatar, Venezuela and non-OPEC Russia agreed last month
to freeze output at January levels in the first global oil pact in
15 years.
Iranian Oil Minister Bijan Zanganeh said last week the freeze was
"laughable". Iranian sources say the country would be prepared to
discuss a production pact once output reaches pre-sanctions levels.
(Reporting by Nidhi Verma and Rania El Gamal; Editing by Mark
Trevelyan)
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