Iran is aggressively releasing its 68 million barrel oil stockpile in hopes of attracting buyers from India, Japan, and South Korea.

Iran is moving forward with contacting major oil importing countries in Asia after the United States approved a 60-day sanctions waiver, hoping to accelerate the sale of its 68 million barrels of oil stockpiles and reduce its dependence on the Chinese market.

June 23, 2569 at 11.57:XNUMX a.m. Bloomberg News reported that Iran is accelerating negotiations with major Asian oil buyers after a 60-day waiver of US sanctions came into effect. This is seen as a crucial opportunity that could allow Iran to resume oil exports and accelerate the clearance of its massive oil stockpiles still stored on tankers, while peace negotiations continue.

Sources in the trade sector indicate that both oil distributors and representatives from the National Oil Company of Iran (NIOC) had begun contacting oil refineries in India, Japan, South Korea, and other Asian countries even before the U.S. officially approved the sanctions waiver, and these efforts intensified after the measures took effect.

Previously, Iran relied almost entirely on China as its primary customer due to sanctions restrictions. However, this easing of sanctions opens opportunities for Iran to expand its customer base to other countries while simultaneously accelerating the disposal of its remaining crude oil and condensate shipments at sea.

Data from Vortexa and Bloomberg calculations indicate that as of June 22, there were approximately 68 million barrels of Iranian crude oil and condensate on tankers, with over 80% lacking a clear destination, making them available for sale to new buyers.

Sources further indicated that the discussions were not limited to short-term trades but also covered long-term contracts, as Iran plans to increase production in the future.

However, Asian oil buyers are not in a hurry to reach a deal, as many countries have sufficient oil reserves after previously sourcing oil from other sources to cope with the months-long blockade of the Strait of Hormuz.

Furthermore, the market is concerned about the uncertainty of US policy under the Donald Trump administration, while sanctions from the European Union and the United Kingdom remain in effect, making financing and insurance significant obstacles. In addition, many ports are reluctant to accept ships from the “Dark Fleet” network that has been used to transport Iranian oil in the past.

Sumit Ritolia, an analyst from Kpler. It was stated that Asian countries are likely to delay their decisions to import oil from Iran as long as US sanctions remain uncertain and geopolitical situations continue to change.

He stated that oil refineries in Asia outside of China have already secured additional crude oil to meet energy demand in advance, particularly in India, one of the world's largest oil importers, which has oil reserves sufficient to last until August.

Although India generally avoids purchasing oil subject to sanctions, its proximity to Iran allows for rapid delivery within 2-3 days, which could become a negotiating advantage in pricing with Iran, which is seeking to sell oil quickly during the limited grace period.

However, analysts believe that cooperation more likely to occur than in the purchase of crude oil may be in the areas of liquefied petroleum gas (LPG), petrochemicals, fertilizers, and other forms of energy cooperation.

Meanwhile, another major problem for Iran is the oversupply of oil in the global market. Despite recent transportation disruptions, Asian markets have not yet experienced a shortage, leaving refineries with insufficient incentive to take the risk of purchasing Iranian oil unless they offer significant discounts.

Currently, benchmark Middle Eastern oil prices like Dubai and Murban are in a state of contango, meaning their delivery prices are near lower than their long-term contracts, reflecting a short-term oil glut.

Warren Patterson, Head of Commodity Strategy at ING in Singapore. They said this waiver opens the door for Iran to sell more oil to Asian countries, instead of relying almost exclusively on China, and could help reduce pressure on Iranian oil prices.

However, if Iran wants to significantly increase its exports in the long term, it needs a permanent relaxation of sanctions rather than a temporary 60-day exemption.

refer : bloomberg.com

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