Iran`s Oil Minister Bijan Namdar Zanganeh announced earlier that there are some 60 million barrels of unsold condensate, stored on water. EIA and IEA put the amount of Iran`s stored oil on tankers at 30 million barrels to 35 million barrels, saying that a part of this volume is crude oil.
Barkeshli, who is currently a private energy consultant and president of the Vienna Energy Research Group says, "however not all that floating oil is to be considered unsold products. "Since ship-to-ship, blending and delivery on the internal water border of Iran has been a common practice for a long time and therefore, it should not be considered as unsold products but as a marketing and supply process. As such, it is not easy to estimate or distinguish between unsold products and delivery process".
"Having said that my own estimate is still close to Mr.Zangeneh for condensate. Figures given by IEA for crude plus condensate sounds underestimated.”
EIA released a report in mid-August saying that, Iran`s floating oil is estimated to stand at 30 million barrels, more than half is condensate, and the rest is mainly medium, sour crude oil. "This estimate reflects the difficulties of finding buyers for the stored condensate, although much higher volumes may be sold should Iran provide discounts to encourage purchases.”
The agency of the U.S. Federal Statistical System added that Iran may find it challenging to find buyers for the condensate, as current condensate prices indicate that consuming markets, particularly in Asia, are well supplied. "By contrast, the crude oil held in storage could be sold more quickly, as price differences currently indicate more demand for medium sour crude compared to lighter, sweeter crude. There is evidence that initial volumes are already moving out of floating storage".
Gal Luft, co-director of the Institute for the Analysis of Global Security (IAGS) a Washington based think tank focused on energy security told Trend on Sept .3 that regarding condensate, the market is well supplied and prices have dipped. "However if new demand is created by using condensate as turbine fuel (Jet fuel) the supply and demand equation can change."
On July 14, the P5+1 (the five permanent members of the United Nations Security Council and Germany) and Iran announced an agreement that could result in relief from United States and European Union nuclear-related sanctions (which include some oil-related sanctions) by the end of current year.
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