Iran’s 40 million barrels stored at sea

Shipping sources and tanker tracking data showed over the past three months Iran had deployed at least 15 very large crude carriers (VLCCs), each capable of carrying 2 million barrels, to store oil.

Iran is storing as much as 40 million barrels of oil on supertankers at sea as it prepares for a sales drive if a nuclear deal can be sealed.

In the meantime, Iran has been parking oil off its coast, mainly on tankers belonging to its national carrier NITC.

“The first thing they will try and do is offload quite a lot of that storage. (Oil Minister Bijan) Zanganeh has already warned OPEC: make room for us. In other words, we are going to sell this oil at any price,” said Mehdi Varzi, a former official at the state-run National Iranian Oil Co.

“Floating storage is there to be put onto the market as soon as possible after some sort of agreement,” said Varzi, who now runs an energy consultancy in Britain.

“It actually makes sense for them to go in fairly hard in order to reclaim market share and hope that high cost producers above them are inched out quicker,” said Samuel Ciszuk, senior adviser on security of supply to the Swedish Energy Agency.

Full article: Iran’s 40 million barrels stored at sea (World Bulletin)

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