Donald Trump’s opposition to a deal with Iran was signalled long before he actually became President of the United States.
But that has not stopped an increase in tension in the region.
Now President Trump has added to the tension in a tweet (see image) which warns: “Anyone doing business with Iran will NOT be doing business with the United States."
Paris-based commodity tracking information service Kpler reports that European imports from Iran fell yet again in July, hitting just 613,000 b/d, lower by 82,000 b/d month-on-month and a decline of 343,000 b/d on a year-on-year basis.
The decline was largely driven by a fall in shipments into France (68,000 b/d, a decline of 169,000 b/d month-on-month) and Greece (34,000 b/d, a decline of 34,000 b/d month-on-month) while arrivals into Turkey (204,000 b/d, an increase of 132,000 b/d month-on-month) and Spain (170,000 b/d, an increase of 31,000 b/d month-on-month) helped to offset the loss.
So far through August, just two vessels –Cumhuriyet and Pola – discharged approximately 1M barrels into Izmit, Turkey and Trieste, Italy respectively.
The decline in Iranian arrivals into Europe has pushed refiners to seek crude from alternative sources.
Output from northern Europe appears to be filling part of the gap. France imported 253,000 b/d from northern Europe in July, marking the highest level since late last year. Much of this volume was dominated by crude oil from the Urals (141,000 b/d), followed by that of Novy Port (68,000 b/d) and Alvheim (21,00 b/d) among others.
Even Spain, which managed a sizable month-on-month increase in arrivals from Iran, looked to northern European crude, with 150,000 b/d in July arrivals, well above the 45,000 b/d average through the first half of 2018.
Keep up to date with all the tanker news and views with Tanker Shipping & Trade and come pay the team a visit at SMM. We are in Hall A3, Stand 410. We are looking forward to meeting you.