Iran's oil exports drop to 400,000 barrels in May

Economy and stock exchange

Iran's crude exports fell sharply in May to about 400,000 barrels per day [bpd] after the United States tightened restrictions on Tehran's main revenue source, data from tankers and two oil exporters said.

The United States re-imposed sanctions on Iran in November after it pulled out of a 2015 nuclear deal between Tehran and six world powers, and with a view to halting Iran's full oil sales, Washington ended sanctions this month for some Iranian oil importers.

However, Iran has exported about 400,000 barrels per day since the beginning of this month, according to data from Refinetiv Aikon and two sector exporters tracking flows, less than half of the April pace, most of which is destined for Asia.

The drop in exports has reduced market supply and boosted prices, as well as a sharp drop in Iran's revenues. Lack of information on the flow rate is exactly a problem for OPEC members and allies, due to meet in June to determine oil production policy.

"I expect exports at 400,000 bpd," an exporter said, an increase of about 250,000 bpd in the first two weeks of the month. The second source said May's exports could reach 500,000 bpd.

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