Iran has huge volumes of oil in floating storage that it could quickly release if a deal with the United States is finalized.
In an update earlier this month, OilX claimed Iran had some 40 million barrels, most of which is likely condensate.
Vortexa estimates Iranian crude in floating storage at 60-70 million barrels while Kpler estimated them at 93 million barrels, Bloomberg reported on Sunday.
However, the volumes would not be released immediately, as matters such as insurance and shipping would have to be dealt with first.
“Iran has built up a large fleet of cargo that could come to market fairly quickly,” John Driscoll of JTD Energy Services told Bloomberg.
Currently, Iran and the United States are both considering the final version of an agreement proposed by the European Union, which is mediating in the negotiations.
According to recent reports, some of the issues have been resolved, but others remain and need to be resolved before a deal is finalized.
Israel’s Haaretz reported yesterday that he had seen a copy of the draft proposal, which involves the release of Iranian prisoners and, in exchange, the release of Iranian funds from international bank accounts.
Iran will be free to keep the uranium it has enriched so far but prohibited from violating the nuclear agreement, writes the Israeli daily.
A nuclear deal would mean the return of Iranian crude to international markets, at a rate of around 1.3 million bpd, according to a recent Financial Times. report. This would significantly reduce oil prices, at least for a while.
Iran is eager to increase its crude exports, but it has signaled it will not rush into a deal until its last remaining demands have been made. Chief among them is the guarantee that the agreement will survive future US administrations.
By Irina Slav for Oilprice.com
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