Business News: Iran holds 69 million barrels of oil ready for when US sanctions end.
Iran could have around 69 million barrels of oil in floating deposits waiting for oil tankers to travel to buyers if US sanctions on its crude exports are lifted, estimates from EA Gibson Shipbrokers quoted by Bloomberg showed Tuesday.
Citigroup also has a similar estimate on Iran’s floating storage. In a statement Monday, the bank said Iran could have around 65 million barrels of oil stored at sea, plus another 54 million barrels in storage on land.
The US and Iran have held indirect talks in Vienna since last month on possible ways for both countries to revert to the so-called Iranian nuclear deal. US President Joe Biden has signaled his readiness to return to the nuclear deal, but only if Iran returns to full compliance with its nuclear activities. Iran, for its part, has said it will not begin complying with the nuclear deal until the US has lifted sanctions against Tehran.
Should an agreement be reached, and after US sanctions are lifted, Iran could deliver oil “to major export markets, including India and China, within 10-20 days,” Citigroup said in its statement. on Mondays, as reported by Bloomberg.
However, Iranian floating crude will not be cleared overnight after the US sanctions are lifted, Gibson Shipbrokers research chief Richard Matthews told Bloomberg. Payment channels must also be authorized, as must all other formalities before buyers regain confidence that they will legitimately buy Iranian oil. Therefore, eliminating Iran’s crude oil inventories will likely take months with a gradual increase in activity, Matthews told Bloomberg.