Iran may drain offshore crude oil cache if nuclear deal reached – Bloomberg

Anil Panchal FXStreet

“Progress toward an Iranian nuclear deal has thrown the spotlight onto a sizeable cache of crude held by Tehran that could be swiftly dispatched to buyers in the event an agreement gets hammered out,” said Bloomberg during a news published early Monday.

Key quotes

About 93 million barrels of Iranian crude and condensate are currently stored on vessels in the Persian Gulf, off Singapore and near China, according to ship-tracking firm Kpler, while Vortexa Ltd. estimates the holdings at 60 to 70 million barrels. In addition, there are smaller volumes in onshore tanks.

The possible full readmittance of Iran to the global crude market, with the potential lifting of US sanctions, comes at complex moment for oil traders.

The original deal collapsed after then-President Donald Trump abandoned it. Last week, the US sent its response to the latest proposal, boosting speculation an agreement may soon be struck, although Tehran said Sunday that exchanges will now drag on into September.

Iran’s offshore crude hoard compares with average daily global supply this year of about 100 million barrels a day, according to an estimate from the International Energy Agency. In the US, President Joe Biden has been releasing about 180 million barrels from the SPR over a six-month period.

WTI remains firmer

Despite the price-negative news, WTI refreshes its intraday high near $93.85 amid concerns that the US-Iran trade deal is far and unclear.

Also read: WTI struggles around mid-$92.00s on US-Iran deal, recession concerns

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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