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FX.co ★ Iran’s oil supplies to fall to 14-month low in May

Iran’s oil supplies to fall to 14-month low in May

Iran’s oil supplies to fall to 14-month low in May

Iran's crude oil exports are set to hit a 14-month low in May, Reuters reported citing a source with knowledge of the Middle Eastern country's tanker loading schedule. The country is experiencing difficulties in increasing oil supplies after the reduction of stocks that are stored on tankers. Analysts say the decline is also associated with the falling demand.

Next month, oil exports to India are set to fall to a one-year low after a dispute over the contract for a gas field. Meanwhile, Japan’s orders have fallen by over 50% from April.

Iran is also going to put about 3 million barrels into storage in May, which makes it clear how much oil remained in the market, despite an agreement between OPEC and non-OPEC producers to cut output.

Iran’s exports of crude oil are expected to come in at 1.7 million barrels a day in May, with almost 100,000 barrels a day being delivered to tankers for storage.

In April, Iran is seen to export 1.8 million barrels a day of crude and a bit more than 370,000 barrels a day of condensate. Thus, supplies are set fall sharply from a six-year high of nearly 2.9 million barrels a day hit in February 2017.

The country is expected to ship about 340,000 barrels a day of crude to India in May, while in April it exported 470,000 barrels a day of crude and condensate.

Japan is projected to buy nearly 40,000 barrels a day in May, the lowest level since March. Exports of oil to Chine are seen to hit a four-month low of little over 500,000 barrels a day.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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