US still aiming to cut Iran oil sales to zero: US envoy for Iran

Updated 15 October 2018
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US still aiming to cut Iran oil sales to zero: US envoy for Iran

  • Hook said Iran's ballistic missile activities need to be deterred.
  • An industry source and tanker data revealed that Turkey and Italy are the last buyers of Iranian crude outside China, India and the Middle East.

PARIS: The United States is still aiming to cut Iran's oil sales to zero and does not foresee the re-imposition of oil sanctions against Tehran on Nov. 4 as having a negative impact on the market as it is well-supplied and balanced, Washington's special envoy for Iran said on Monday.
Speaking to reporters in a conference call, Brian Hook also said Iran's ballistic missile activities need to be deterred and that European efforts to create a special purpose vehicle for trade with Tehran would find no demand as more than 100 foreign firms had indicated they would be leaving the country.

Hook's statements came as an industry source and tanker data revealed that Turkey and Italy are the last buyers of Iranian crude outside China, India and the Middle East, the latest sign that shipments are taking a major hit from looming US sanctions.
The Islamic Republic has exported 1.33 million barrels per day so far in October to India, China, Turkey and the Middle East, according to Refinitiv Eikon data. No vessels are shown heading to Europe with Iranian crude.
However, an industry source who also tracks the exports estimated shipments at 1.5 million bpd, including vessels which are not showing on AIS satellite tracking, of which a 1 million-barrel tanker is going to Italy.
That’s down from at least 2.5 million bpd in April, before President Donald Trump in May withdrew the United States from a 2015 nuclear deal with Iran and reimposed sanctions. The figures also mark a further fall from 1.6 million bpd in September.
The expected loss of a sizeable amount of Iranian supply has helped drive a rally in oil prices, which on Oct. 3 hit their highest since late 2014 at $86.74 a barrel. Crude has since eased to $81 although analysts say the Iranian export drop remains supportive.
“It’s one of the reasons why prices are still above $80,” said Eugen Weinberg, analyst at Commerzbank.
The October figures add to signs that buyers are sufficiently wary of the US sanctions to stop or scale back their Iranian crude dealings, and that exports are falling more steeply than some in the market expected.
For sure, definitive export data is hard to uncover. Tanker schedules are often adjusted, exports vary week by week and the tracking of tankers, while easier than in the past due to satellite information, remains both art and science.
In the first week of October, Iran’s crude exports averaged 1.1 million bpd according to Refinitiv and less than 1 million bpd according to another industry source.
While Washington has said it wants to cut Iran’s oil exports to zero, Iran and Saudi Arabia say that is unlikely to happen. The Trump administration is considering waivers on sanctions for countries that are reducing their imports.
India, a major buyer, has ordered Iranian oil for November.
Iran, which has pledged to block any OPEC supply increase that the country deems to be against its interests, says it has found new buyers for its oil and its crude output has fallen only slightly.
For September, Iran told OPEC its crude output dropped by 50,000 bpd to 3.76 million bpd, while consultants and government agencies that OPEC uses to monitor production reported a larger fall to 3.45 million bpd.
Indeed, Iran may not yet have cut production to match the rate of decline in its exports, as the country appears to be storing more oil on ships, as it did during sanctions that applied until the 2015 nuclear deal.

 


Egypt celebrates antiquities museum before new institution takes the limelight

Updated 20 November 2018
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Egypt celebrates antiquities museum before new institution takes the limelight

CAIRO: Bright lights illuminated the Egyptian Museum in Cairo’s Tahrir Square on Monday during a celebration that could mark the last time the two-story museum is feted as one of Egypt’s main tourist attractions.
Located in one of Egypt’s most famous squares, the museum has been the country’s principal keeper of antiquities for over a century, but a bigger museum is under construction.
Officials celebrated the 116th anniversary of its founding and insisted it will not become obsolete once the Grand Egyptian Museum opens its doors. Antiquities will be moved to the new museum, which is expected to partially open next year.
“Our ceremony this evening is to tell the world this museum will never die,” said Antiquities Minister Khaled Al-Anany.
The old museum will be used to display recent discoveries as well as antiquities from store rooms, the minister said.
Housing the world’s biggest collection of pharaonic antiquities has been a challenge for the museum building, which was established in 1902.
Tens of thousands of objects have been sitting in its storerooms and galleries were often said to be too packed.
The Grand Egyptian Museum will be located near the Pyramids and Cairo hopes it will help a tourism industry that has suffered from the turmoil that followed a 2011 uprising.
Highlights of the evening were exhibitions of mummies and the ornamented coffin covers of pharaonic courtier Yuya and his noblewoman wife Thuya.
A 20-meter-long papyrus said to be the longest on display in Egypt was also on show during the ceremony.