Higher Iranian Export Volumes Weighing on Crude: Commerzbank

Higher levels of Iranian crude hitting the market are contributing to global oil price weakness according to a Commerzbank note out this week.

• A number of vessel tracking firms have placed Iranian crude/condensate exports at around 1.5 to 1.6mn bpd in May – a five year high.
• While oil shipments from Iran are still roughly 1 million b/d below pre-sanctions levels, they are already twice as high as they were last autumn, the bank said.
• Iran is able to find more buyers for its oil again, but given the risk associated with the sanctions, the supply is likely being offered at a discount, making it attractive to certain buyers, Commerzbank said.
• China has emerged as the key buyer for Russian oil. It claims it is not importing any oil from the country but is instead re-exporting cargoes via Malaysia to try and obscure the original destination of the shipments.