Iran Boosts Oil Trade via UAE Ahead Of Sanctions Relief
The trading sources said Iranian fuel oil shipments are being presented with documents declaring it of Iraqi origin at the ship refuelling hub of Fujairah
Iran has boosted exports of fuel oil through US-ally the United Arab Emirates (UAE) and also almost 2X’d its imports of gasoline, despite Western sanctions, trading sources said.
The US State Department recently cabled a message to embassies around the world to reiterate that sanctions on Iran are still in place, diplomatic and government sources said last Friday.
Yet behind the scenes Iran and its eager potential trading partners are quietly getting ready for life after sanctions, following the landmark July accord with the West over Tehran’s nuclear policy.
The resumption of some direct shipments of refined Crude Oil products from Iran’s Bandar Mahshahr to the UAE’s Fujairah port contrasts with the more intricate means Tehran employed using ship-to-ship transfers and trading firms in the UAE acting as middlemen for buyers to sidestep sanctions.
The trading sources said Iranian fuel oil shipments are still being presented with documents declaring it of Iraqi origin at the ship refuelling hub of Fujairah. Fuel oil is used to power ships and also for electricity generation.
State-owned National Iranian Oil Co.(NIOC) has now started to offer much more fuel and at much more attractive discounts, the trading sources said.
It is also using its own ships to sail directly to Fujairah, saving buyers costly freight charges, as it becomes more proactive in anticipation of lifting sanctions next year, the sources said.
“Now because they think the sanctions are over, they are shipping more, I have seen around 6 to 7 shipments of fuel oil coming through Fujairah with fake documents, the volumes are bigger now,” said a source.
“Sometimes they use their own ships. They need to put these cargoes out even before sanctions are lifted. People are ready to buy it if they can offer $2-3 discounts on the price.”
The trading sources estimated Iranian fuel oil exports at around 350,000-500,000 tonnes per month in September and October.
Officials at NIOC and the UAE’s Fujairah port could not immediately be reached for comment.
Stay tuned…
HeffX-LTN
Paul Ebeling
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