Iran Seeks Long-Term Oil Contracts With Europe

Iran Seeks Long-Term Oil Contracts With EuropeIran Seeks Long-Term Oil Contracts With Europe

Iran plans to convert its spot oil shipments to Europe into long-term contracts, the director for international affairs at the National Iranian Oil Company said on Sunday.

“Iran will continue its crude exports to Europe, which amount to 600,000 barrels per day,” Seyyed Mohsen Qamsari was also quoted as saying by Shana.

Asked whether Iran will start oil exports to potential customers in Europe, Qamsari noted that the country will maintain crude supplies only to companies that have already reached an export agreement with NIOC.

Nearly one-third of Iran's crude goes to European markets, with the lion's share of its output sent to four major buyers in Asia, namely China, India, South Korea and Japan.

On the status of oil sales to India, he also said the Asian country has a 360,000-barrel-a-day oil contract with Iran, though its imports currently amount to 390,000 barrels per day.

Iran is selling three times more oil to India even as its rival oil-producing nations try to work out a deal to cap their collective crude production.

India has embraced the country’s return to the market by increasing Iranian imports more than any other country, while Europe’s refiners have been slower to increase purchases of Iran’s oil.

So far, most of Iran’s export hike to India has displaced Iraq’s and Nigeria’s sales to refineries along India’s eastern coastline.