RSS SubscribeWill Israel attack Iran’s oil production? – Richard Mills
2024.04.14
Iran’s exports of crude oil grew by roughly 50% last year to a five-year high of 2.99 million barrels of oil daily.
The International Energy Agency predicts a further rise of 160,000 barrels per day in 2024. The vast majority of Iranian oil is going to China. China buys Iranian oil with the Yuan at a $13 per barrel discount to Brent.
The Japan Organization for Metals and Energy Security forecasts the supply-demand balance flipping from a shortfall of 110,000 barrels per day last year to a 600,000-barrel surplus in 2024. Oil is currently down 20% from last Septembers highs.
Will Israel attack Iranian oil production? And what would be the consequences?
As a follow up post…
China buys 30% of its oil from sanctioned countries – Iran, Venezuela and Russia.
China’s smaller independent refiners, called “teapots”, have become Tehran’s top clients since first buying Iranian oil in late 2019. They replaced state-run refiners, which stopped dealing with Iran over concerns about falling afoul of U.S. sanctions.
Teapots absorb about 90% of Iran’s total oil exports, usually passed off as oil originating in Malaysia or the United Arab Emirates.
Richard (Rick) Mills
aheadoftheherd.com
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