Iran Oil Exports Slump Under Threat of Sanctions

Energy consultancy Facts Global Energy (FGE) predicts Iran's crude exports could fall to 700,000 barrels per day due to sanctions. This forecast comes as several countries have already started reducing their imports of Iranian oil. India, which imported an average of 550,000 bpd of Iranian oil in the first half of the year, has not yet made an official announcement about stopping imports, but its state-owned refineries are preparing for alternative supplies.

South Korea and Japan have said they would stop importing Iranian crude unless granted a US waiver. South Korea's imports of Iranian crude were down 40% in June compared to the same month last year, while Japan's biggest bank, MUFG Bank Ltd, will halt all Iran-related transactions to comply with US sanctions.

China, however, may ignore US sanctions and continue importing Iranian oil at a rate of 650,000 bpd. Several European countries, including Italy and Turkey, were major importers of Iranian crude in the first half of the year, but some refiners have already stopped purchasing Iranian oil after Swiss lender Banque de Commerce et de Placements said it would stop financing Iranian cargoes by June 30.