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Iran currently ships about 2.2 million barrels a day of oil and also exports 400,000-450,000 barrels a day of condensate.
Iran currently ships about 2.2 million barrels a day of oil and also exports 400,000-450,000 barrels a day of condensate.

Tehran Sees Crude Exports Unscathed by Trump Threat

Iran's return to the international market after the lifting of sanctions in early 2016 was welcomed by various global end-users

Tehran Sees Crude Exports Unscathed by Trump Threat

Iran will continue to export crude oil to global customers, unfettered by US President Donald Trump’s intensifying offensive against the country, according to the Middle East nation’s state-run producer.
"The OPEC member is shipping a combined 2.6 million barrels a day of crude and the ultra-light oil known as condensate, and expects to export more at the end of 2017," said Saeed Khoshrou, director of international affairs at the National Iranian Oil Company.
The country is “not worried” about its ability to send cargoes overseas to Asia and Europe despite rising tensions with the US, he said in an interview in Singapore, Bloomberg reported.
President Trump said at the UN General Assembly last week that a deal between nations easing sanctions on Iran and curbing its nuclear program was “an embarrassment to the United States” and Secretary of State Rex Tillerson laid out the US case to European allies about flaws in the accord.
Before the 2015 agreement, trade and financial restrictions imposed on the Middle East nation had hampered its crude exports to customers in Asia, the world’s biggest oil market, as well as Europe.
While the recent rhetoric from the US may make “some investors worried about the future”, refinery customers have a need for Iranian crude and “there is no document from the United Nations that forces them not to work with Iran”, Khoshrou said.
The “whole Europe won’t follow the policy of US. For exports, I’m not worried about that," he added. Iran currently ships about 2.2 million barrels a day of oil and also exports 400,000-450,000 barrels a day of condensate, he said.
About 60% of the Iranian crude sent overseas are consumed by Asian processors, while the remaining 40% are taken up by those in Europe. The Middle East producer currently is not storing any crude or condensate supply on tankers at sea.
Iran was the second-biggest producer in the Organization of Petroleum Exporting Countries before its disputed nuclear program prompted the European Union to ban purchases of its crude in July 2012.
Countries, including China, India and Japan, had to get a waiver from the US to buy limited amounts of Iranian oil or risk losing access to parts of the global financial system.

  Strong Exports to Asia
Iran has shipped more than 500,000 barrels per day of ultra-light crude to the Far East so far in 2017 and that flow is expected to remain strong for the rest of the year as South Korea steps up its purchasing plans and other Asian end-users eye naphtha-rich South Pars condensate for its competitive price, Platts reported.
Iran's return to the international market after the lifting of economic sanctions in early 2016 was welcomed by various North Asian end-users, and condensate trade flows between Tehran and the Far East will likely remain robust, setting aside any potential supply disruption risks stemming from the recent US-Iran diplomatic tension for now, regional condensate traders said.
Iran's flagship South Pars condensate has fast become South Korea's favorite ultra-light crude this year, and Asia's top condensate consumer aims to buy at least 250,000 bpd of the grade in the fourth quarter, two sources with close knowledge of Iran-South Korea term deals said.
Hanwha Total Petrochemicals has been consistently receiving 100,000-120,000 bpd of South Pars condensate to date this year, said one of the sources, adding the growing popularity of US Eagle Ford condensate was unlikely to alter South Korea's preference for Iranian supply.
"US condensate is hot property this year but, so what? South Pars is still cheaper delivered and the sheer volume can never be matched," the Seoul-based source said.

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