Greek Tanker Owner Asked About Iran Oil as Europe Awaits Influx

  • Iran's oil trade dominated by its own fleet, Asian owners
  • Sanctions that barred Europe's owners have now been lifted

A Greek oil-tanker owner was asked about transporting Iranian crude, a shipment that’s only just become permissible following an easing of sanctions that hit the Persian Gulf country four years ago.

Dynacom Tankers Management Ltd., based in the Athens suburb of Glyfada, has been approached to haul the Persian nation’s crude, said chartering manager Odysseus Valatsas, declining to elaborate. Shipbroker reports compiled by Bloomberg show that Litasco SA and Cia. Espanola de Petroleos SAU both have Iranian cargoes for which they will need vessels next month for westbound shipment. Almost all Iran’s crude was sent to Asia since sanctions against the country escalated in 2012. Many of the measures were stopped this month.

The oil market is waiting to see how fast Iran can add barrels to what’s already a glutted market. Europe was among the destinations that stopped purchases during the sanctions and several of its refiners have said they want to revive their trade relationships. Iran’s oil minister said output could rise 500,000 barrels a day within weeks of the end of sanctions, oil analysts surveyed by Bloomberg anticipated less than that.

“The market has been pricing in the potential for half a million barrels extra in the coming months,” Ole Hansen, a Saxo Bank commodity strategist, said by phone. “The market is basically saying: ‘Show me the barrels, let’s see what you can muster’.”

Seaborne transportation of Iran’s crude has been dominated by its own fleet and Asian owners during the sanctions. The International Energy Agency said Jan. 19 that Iran’s return could help global oil markets to “drown in oversupply”, sending lower earlier this month. Hellenic Petroleum SA became what may be the first European refiner to sign an agreement with Iran after the lifting of sanctions.

Cepsa spokesman Ignacio Rodriguez-Solano said that the company has historically purchased Iranian oil and would consider doing so again after the removal of sanctions, if profitable. Litasco spokeswoman Ina Stumpe declined to comment.

Before it's here, it's on the Bloomberg Terminal.