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Oil Supply to North Korea May Rise

Oil Supply to North Korea May RiseOil Supply to North Korea May Rise

Iran will likely increase its oil flows to North Korea after the removal of sanctions targeting its nuclear program, according to a report published by the US Congressional Research Service.

The document covers the likely consequences to Iran’s foreign policy in the wake of the implementation of the Joint Comprehensive Plan of Action, Washington-based portal NK News reported.

“According to some observers, a portion of China’s purchases of oil from Iran and other suppliers is reexported to North Korea,” the portal said, citing the report.

“As Iran’s oil imports increase after international sanctions are removed in conjunction with the JCPOA, it is likely that additional quantities of Iranian oil might reach North Korea, either via China or through direct purchasing by North Korea.”

Iran and six world powers reached a historic agreement in July to curb Tehran's nuclear program in exchange for decades-old embargos against the country.

The congressional report does not give further details on the reexports, thought the NK News ship tracker shows frequent North Korean tanker trips to a number of oil terminals in China.

The new demand, coupled with Pyongyang's lack of domestic oil and gas production and refinery capacity, could make it a likely destination for Iranian crude or oil products.

 

Financialtribune.com