Iranian crude oil imports by Asia's top four buyers dropped to the lowest volume in three years in 2018 amid US sanctions on Tehran, but China and India stepped up imports in December after getting waivers from Washington.
Asia's top four buyers of Iranian crude — China, India, Japan, and South Korea — imported a total 1.31 million barrels per day (bpd) in 2018, down 21 percent from the previous year, data from the countries showed.
That was the lowest since about 1 million bpd in 2015 when a previous round of sanctions on Iran led to a sharp drop in Asian imports, Reuters data showed.
The United States reimposed sanctions on Iran's oil exports last November as it wants to negotiate a new nuclear deal with the country. US officials have said they intend to reduce the Iranian oil exports to zero.
On a monthly basis, Asia's imports from Iran rebounded to a three-month high of 761,593 bpd in December as China and India stepped up purchases after Washington granted eight countries waivers from the Iranian sanctions for 180 days from the start of November.
In December, China's imports climbed above 500,000 bpd for the first time in three months, while India's imports rose above 302,000 bpd.
Japan and South Korea did not import any Iranian crude that month because they were still sorting out payment and shipping issues, but the countries have resumed oil lifting from Iran this month.
During the 180-day period, China can import up to 360,000 bpd of Iranian oil, while India's imports are restricted to 300,000 bpd. South Korea can import up to 200,000 bpd of Iranian condensate.
Futures in New York rose for a third day, taking their advance in January to 20 percent. The Fed signaled Wednesday it’s done raising rates, for the time being, pushing down the dollar. US imports from Saudi Arabia fell to the lowest since October 2017 last week
Russian Energy Minister Alexander Novak said the country cut output gradually this month and will try to increase the pace of reductions in February.
West Texas Intermediate crude for March delivery rose 28 cents to USD54.51 a barrel on the New York Mercantile Exchange at 7:33 a.m. in London. It gained 92 cents on Wednesday to close at USD54.23 and is up $9.10 so far in January.
