Iran Courts South Korea, Japan With 60-Day Crude Sales Window

Iran is seeking buyers for its crude in major Asian markets including South Korea and Japan. The aim is to sell as much oil as possible during a 60-day sales period allowed under a previous memorandum of understanding.

Bloomberg reported on June 23 that the National Iranian Oil Co., or NIOC, has recently been in contact with refiners in South Korea, India and Japan.

Iran has struggled to sell crude because US sanctions blocked dollar payments. It had exported only limited volumes to China through indirect channels. With sanctions paused, Tehran is trying to secure more buyers and clear as much crude inventory as possible from tankers at sea, Bloomberg reported. Oil analytics firm Vortexa said about 68 million barrels of Iranian crude were in floating storage as of June 22.

Major Asian buyers, however, are not rushing to accept Iran's offer. They have built up ample inventories to prepare for the possibility of a months-long closure of the Strait of Hormuz. An official at Japan's Taiyo Oil said the company is not considering purchases of Iranian crude at this stage.

Future trade in Iranian crude will depend on how long US sanctions relief remains in place. US lawmakers have moved to limit President Donald Trump's war powers and prevent additional military action. The US Senate on June 23 passed a resolution aimed at blocking Trump from resuming the war with Iran.

As geopolitical tensions eased, international oil prices fell to a four-month low. Brent crude for August settlement on ICE Futures Europe in London closed at $77.08 a barrel, down more than 1% from the previous session. That was the lowest level since Feb. 27, just before the war broke out.

Kim Dong-hyun, Hankyung.com reporter 3code@hankyung.com