European refineries keen to resume purchase of Iranian oil

Refineries in southern Europe are ready to resume purchases of Iranian oil, hoping to reduce the price and increase profitability, Reuters is reporting, after yesterday’s agreement over the scale and intent of its nuclear program paved the way for the lifting of sanctions.
Iran was one of the regular suppliers of European refineries prior to the imposition of sanctions in 2012, after which the export of oil from the country almost halved to 1 million barrels a day, mostly to Asia.
“Iran… is our long-time, valued partner, “said the representative of Greece’s largest refiner Hellenic Petroleum. “We look forward to its return to the market. The volume of oil that will return to the Mediterranean market, will reduce prices and give converters greater freedom of choice.”
Iranian officials said that it would be trying try to increase supplies  to Europ “as soon as possible” in order to reach 40% market share.  Oil exports could increase by as much as 60% in the 12 months immediately following the formal lifting of sanctions, according to a Reuters poll of analysts.
European companies –  including Italy’s Eni and Saras –  have been negotiating with the National Iranian Oil Company for the past year, in anticipation of the lifting of sanctions. Iran is expected to increase exports to 300, 000-400,000 bpd over the next three months, 150,000 of which will be destined for Europe, according to  KBC consultant Eshan ul-Haq.

Source: reuters