LONDON (Reuters) – Iran has reduced crude oil production to its lowest level in four decades, as tanks and storage vessels are nearly full due to declining exports and reduced operating of refineries due to the Corona virus pandemic, according to sector data.
According to FGI Energy, total crude inventories on land increased to 54 million barrels in April, from 15 million barrels in January. Inventories increased in June to 63 million barrels.
Kepler estimates, market information, that the average Iranian crude stocks on land in June amounted to about 66 million barrels. This equates to about 85 percent of the storage capacity available on land.
Tensions between Tehran and Washington have been exacerbated since 2018 when the United States withdrew from a 2015 nuclear deal between Iran and six world powers and President Donald Trump reimposed sanctions on Iran, undermining vital oil exports to the country.
Iran’s floating oil tanks are also filled. Sources in the maritime transport sector said that estimates indicate that Iran uses about 30 tankers to store oil, most of which are giant tankers, and that one of them can carry two million barrels of oil as a maximum.
This means storing more than 50 million barrels of oil. The sources said that this was likely a mixture of ore and condensate, which is a very mild degree of ore.
According to Refinitiv data, it stored at most 56.4 million barrels in floating storage sites until July 3.
Data from Visel Value, which specializes in assessments, showed that Iran’s fleet of 54 crude oil tankers.
Prepared by Mahmoud Salama for the Arab Bulletin – Edited by Nadia El-Goely