Iran's oil exports to Japan have experienced a substantial rise since the beginning of the current Iranian year (started March 20), as Japanese refining complexes exceed their import quotas.
Mohsen Qamsari, director of international affairs at the National Iranian Oil Company, made the statement in response to western media claims the Persian Gulf state's oil export to Japan has declined drastically, Mehr News Agency reported.
Ruling out speculations on Iran's oil export reduction to the Southeast Asian state, the official added that not only has the export volume not plunged, but it has also surged.
Underscoring the fact that there are no constraints on meeting Japan's oil requirement, the official added the National Iranian Oil Company has exported more oil to Japanese refineries than their contracts' ceiling.
According to the official, due to an overhaul of Japanese refineries, there may be a reduction in oil exports, though Iran's oil sale has followed an upward trend since 2016 compared to last year's corresponding period.
Japan renewed all its oil purchase contracts with Iran for a year and plans to increase Iran's oil export to the Southeast Asian country by 350,000 barrels per day.
"New contracts call for providing Japanese refineries with more than 130,000 bpd for a year. Nonetheless, serious negotiations are underway to have a threefold increase in oil export to the Southeast Asian state," Qamsari said.
Market Share
Commenting on Iran's share in Japan's oil market, standing at 5% currently, the official added that plans have been made to raise the share to 10%, that is 350,000 bpd, as Japan is not only a traditional, strategic customer but its officials have also expressed their willingness to increase import from Iran due to its quality crude.
"Saudi Arabia, the UAE, Kuwait, Qatar, Russia and Mexico account for 32%, 22.4%, 9.1%, 8.3%, 8% and 2.73% of Japan's oil market respectively," he said.
According to Qamsari, Iran's return to the market has coincided with Japan's decreasing crude refining capacity.
In other words, the country's refining capacity has declined from 5.5 million bpd to 3.5 million barrels, because of which competition among oil producers for gaining the lucrative market has intensified recently.
