SINGAPORE/TOKYO: Imports of Iranian crude oil by major buyers in Asia hit their lowest in more than five years in November as US sanctions on Iran’s oil exports took effect last month, government and ship-tracking data showed.
China, India, Japan and South Korea last month imported about 664,800 barrels per day (bpd) from Iran, according to the data, down 12.7 per cent from the same month a year earlier.
South Korea cut imports to zero for a third month in November while Japan followed suit. India’s November imports are down about 40 per cent from October, the data showed.
Asia’s Iranian oil imports are set to rise from December after the United States granted eight countries waivers from sanctions against Iran’s oil exports for 180 days.
China’s Iranian oil imports rebounded to close to 390,000 bpd in November, up from about 247,000 bpd in October, the lowest in more than five years.
Sinopec, Tehran’s biggest crude buyer, resumed Iran oil imports shortly after China received its waiver in November while China National Petroleum Corp (CNPC) will restart lifting its own Iranian oil production in December. Japan and South Korea are preparing to resume Iranian oil imports in early 2019.
India is expected to restrict its monthly purchases of Iranian oil to 1.25 million tonnes, or 9 million barrels, during the waiver period from November.
Oil prices rebound
Oil prices rebounded on Friday, clawing back some of the ground lost this week, but remained close to their lowest levels in more than a year as rising US inventories and concern over global economic growth kept markets under pressure.
Brent crude oil LCOc1 was up $1.20, or 2.3 per cent, at $53.36 a barrel by 0830 GMT, having earlier risen more than 3 per cent. It had dropped 4.2 per cent on Thursday.
US light crude CLc1 was up $1.20, or 2.7 per cent, at $45.81, after rising 3.6 per cent in early trade.
Oil prices fell to their lowest in almost 18 months this week and are down more than 20 per cent for the year, depressed by ample supplies that have filled fuel tanks worldwide.
“For the time being, the stock market and the oil market will echo each other,” said Ahn Yea-Ha, commodity analyst at Kiwoom Securities. “Global economic slowdown worries have been weighing on stock market movements, and oil prices are not free from those concerns.”
Asian stocks edged up on Friday after US shares extended gains for a second straight day.
Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore, said crude prices had been pressured by slowing economic growth “coupled with the expectation of strong US production in the new year”.
US crude inventories rose 6.9 million barrels to 448.2 million barrels in the week to December 21, according to the American Petroleum Institute. The US Energy Information Agency (EIA) will publish its data at 1600 GMT.
“If the EIA’s data shows a rise in US crude inventories, that would cap price gains,” Ahn said.
The United States has emerged as the world’s biggest crude producer this year, pumping 11.6 million barrels per day (bpd), more than both Saudi Arabia and Russia.
Russian Energy Minister Alexander Novak said on Thursday that rising protectionism and the unpredictability of the US administration had greatly contributed to global oil price volatility over the past two years. — Reuters
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