India has allowed its refiners to ship Iranian crude via shipping and insurance arrangements made by Iran, according to an exclusive Reuters report.
Citing government and industry sources, Reuters reports that 200,000 barrels of oil a day will be shipped on a cost, insurance and freight basis. The industry norm is ‘free on board’, where the customer pays and arranges shipping and insurance costs.
State permission to refiners will last for six months, or until sanctions are lifted, whichever is sooner.
Iran is looking for solutions which enable it to export its crude to key Asian customers in the face of EU sanctions introduced yesterday which cut off mainstream tanker insurance options.
Iran’s export capacity has been slashed by its own decision to store millions of barrels of crude in tankers to avoid production shut-ins.
OPEC
Iranian Oil Minister Rostam Qasemi has urged the convening of an emergency OPEC meeting in the light of oil prices sticking below $100 a barrel.
Speaking to Oil Ministry news agency Shana, Qasemi, said that at the In 161st meeting of OPEC it was agreed if oil prices fall below $100 a barrel it means that prices are in crisis, so Secretary General of Abdalla El-Badri, has been urged to make preparations for holding an emergency meeting.
Iran’s fiscal breakeven is several dollars above prevailing Brent prices of $97.80, though Tehran says it is sitting on $150 billion of foreign reserves to weather sanctions and the related drop in oil export earnings.
