Iranian economy is ready to take a surge and boost the oil trade, soon after repealing of western sanctions in January 2016. Super tankers registered with the Iranian crude oil companies are sailing to the European frontiers, which sends clear cut message – Iran is boosting and a fillip effect to its oil trade business.
A supertanker with Iranian crude landed at Poland’s Baltic Sea port of Gdansk, reiterates Iran’s yearning desire to get the lost market share in oil exports and trading back. It is doubtful to get the idea, whether the buyer is Polish refiners PKN Orlen or GrupaLotos, or whether the super oil tanker continues to remain in Poland for long, until it is further shipped to Germany, connected through pipeline to Gdansk.
The ship tracking data has shown that The Atlantas Very Large Crude Carrier (VLCC) sailed off the main oil export terminal in Kharg Island loaded with 2 million barrels of crude on June 27, 2016, and headed for Gdansk. VLCCs do not have the facility to dock in the Baltic Sea port, though oil can be transferred to a smaller vessel for its discharge in Gdansk.
Quite significant to note here is that Polish refiners have until now been dependant on Russia to meet the oil demands. But in the wake of turf war and slashed oil prices, Poland is ready to experiment with alternative grades, and in the process would gain a stronger negotiating advantage with Russian oil producing companies.
Lotos signed up the deal with Saudi oil in 2015, and PKN Orlen recently signed a supply deal with Saudi Aramco, which indeed is the first long-term oil supplying deal in the Gulf region.
Prior to the western sanctions on Oil trading, Iran exported about 2.2 million barrels per day (bpd). Iran will be fighting for the market share between top oil producers in the world, including Russia and Saudi Arabia.