Wednesday, 11 August 2010

Turkey, Iran sold 1.2 million gasoline BLS in June

Maritime News
August 11, 2010 11:44
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Turkey, Iran sold 1.2 million gasoline BLS in June

Turkey exported far more gasoline to Iran in June than previously indicated ahead of far reaching U.S.-led sanctions, figures from the Turkish government received by Reuters showed

Turkey sold 138,673 tonnes of the motor fuel to Iran in June, the
equivalent of more than four standard cargo tankers, or 1.2 million
barrels.

The Islamic Republic turned to Turkey and China for gasoline imports
when most other sellers stopped supplying it ahead of U.S. sanctions,
which came into force in July.

The threat of sanctions meant Iran had to pay well above the norm for
the fuel, data from TUIK, the Turkish statistical institute, showed.

Turkey received $121.8 million from Iran for the sales, which amounted
to an average of $878 a tonne. That is 25 percent above the average spot
price in the Mediterranean in June of around $700 a tonne, according to
Reuters data.

“It’s a ridiculous level but not unexpected,” one European gasoline
trader said. “When every oil major and trader is being pressured to drop
supply, it comes down to the Turks and Chinese.”

TURKEY AND CHINA

Turkish refiner Tupras began supplying gasoline to Iran in June after a hiatus of at least 18 months, trade sources said.

Just one cargo of gasoline sailed from Turkey to Iran that month, the
sources had said, though some traders and brokers told Reuters it was
possible that supplies might have passed over the land border between
the two countries.

The TUIK data did not specify how many tonnes went by sea.

The sales of gasoline to Iran in June made up more than one-third of all
of Turkey’s exports to the Islamic Republic that month, the data
showed.

In July, only three cargoes of gasoline reached Iran from all suppliers,
according to a shipping document seen by Reuters, though some traders
said Iran needed less than the seasonal norm after stockpiling ahead of
the U.S. sanctions.

The West suspects Iran of attempting to build nuclear weapons, but
Tehran says its development of nuclear technology is for peaceful
purposes.

The Tupras June shipment came just days after Turkey and Brazil brokered
a nuclear fuel swap plan with Tehran, aiming to quell international
fears over Iran’s atomic ambitions.

Wide ranging U.S. and European Union sanctions from last month were
designed to squeeze Iran’s fuel imports and increase its international
isolation.

Iran is the second-largest crude oil producer in the Organization of the
Petroleum Exporting Countries (OPEC) but relies on imports for up to 40
percent of its gasoline needs because it lacks refining capacity.

Pressure on Iran was compounded in July when insurance market Lloyd’s of
London said it would not insure or reinsure petroleum shipments going
into Iran.

The owner of a gasoline tanker refused to allow the vessel to sail to
Iran from Turkey later in July, according to trade and shipping sources.

Source: Reuters

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