Iran stores crude oil on supertankers at sea to have an operational power when demand in the market declines. Oil consumers have been speculating that Iran might be storing up to 40 million barrels of oil in VLCC supertankers.
Iran officials denied saying that only 10 million barrels are stored. They claim that it is not a significant figure. Much of the oil stored on is condensate that has been building up for a variety of reasons, including a fire in China and not as “psychological warfare.”
The sanctions under a nuclear agreement reached in July have to be lifted. Hence, “for every barrel which we produce, there is a customer,” Managing Director of the Iranian Offshore Oil Company (IOOC) Saeed Hafezi said. Negotiations are being held in some countries for raising oil sales.
Iran’s crude sales will rise by 500,000 barrels (per day) immediately and in less than a month after the removal of sanctions. However, crude oil prices will not fall beneath $40 or $45 in the international market.
Officials have been promoting the new energy contract model to attract foreign investment to the country’s vast oil and gas sector after the removal of sanctions, in a series of projects worth $185 billion.