Oil exports from Iran collapsed on extended US sanctions in mid-2018. However, the major importers from Iran are going to boost buying benefiting from softer restrictions granted by Washington.
Donald Trump initially planned to make Iran reduce oil exports as much as possible as well as put pressure on the development of nuclear and missile projects. As for other targets, it should be mentioned restriction of the rebels' support in Syria, Lebanon and Yemen, as reported Reuters.
For now, US allies, Japan and South Korea, have stopped sourcing Iranian oil. As for India, another major importer, the country reduced purchases – Deli thinks that Donald Trump may count this attempt to become less dependent from Iranian material and help them to get some softening once the sanctions come into force.
Moreover, despite the trade war with the USA Beijing has agreed to cut imports in line with Washington guidance.
At the same time, the USA met halfway the largest investors (India, China, South Korea, Japan, Italy, Greece, Taiwan and Turkey) and agreed to make some concessions regarding the restrictions. These countries can buy out at least some volumes for another 180 days, so oil exports can hike beginning from December.
According to sources, some Asian importers have started looking for more orders for Iranian material. China will reportedly be able to purchase 360,000 bbl per day from Iran, which accounts for a half of daily imports to China since 2016.