Demand surges for Iranian crude oil

Demand for Iranian crude oil has increased in Europe since sanctions were lifted early last year.    Foreign demand for Iranian crude oil has increased significantly since sanctions against the nation were lifted last year.
   According to U.K.-based shipping consultancy VesselsValue, Iran is exporting double the amount of crude oil globally, with new market prospects in Europe, particularly France, Italy, Greece and Spain, Platts reported.
   The European Union first banned Iranian crude oil five years ago in July 2012, and the ban was lifted early last year in January. Prior to the imposed sanctions, only a handful of shipping companies transported crude oil from Iran, the largest of which was the National Iranian Tanker Company (NITC).
   Throughout the ban, and due to subsequent insurance coverage concerns, Iranian crude oil exports were limited even in countries that were permitted to purchase oil from Iran. Only India, South Korea and Taiwan permitted Iranian vessels to call their countries based on local insurance coverage and on a “cost and freight” (CFR) basis.
   With the ban lifted, the previous handful of shipping companies have turned into many more, including NITC, Dynacom, Delta Tankers, Euronav, Polembros, COSCO and others.
   Just last month, Iran’s oil minister Bijan Zanganeh reportedly said that Iran would reach its 4 million barrels per day target by the end of March, marking the return of Iran’s pre-sanction export levels.
   Despite these gains, the United States is on the opposite end of this growth, because while secondary sanctions were lifted by the U.S., primary sanctions against Iran are still in place, Platts said.