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Global Pandemic Strikes Iran's Oil Exports

(Wall Street Journal) Benoit Faucon - Long before the coronavirus crisis, Iran's energy sector had been shattered by years of sanctions. More recently, the Covid-19 crisis has led to a sharp global decline in demand for oil and crude oil prices. In March, deliveries of Iranian crude to China - Iran's biggest customer - collapsed by 60%, according to Chinese customs data. Within weeks, Iran's onshore tanks were virtually full, according to satellite data analyzed by consulting firm Kayrros. According to TankerTrackers.com, Iran shipped 7.9 million barrels to Syria in March. Tehran has historically delivered oil to Syria under a credit line it doesn't expect to be repaid, Western officials have said. "Iran can't sell this oil, so they may as well give it to Syria," said Fabrice Balanche, a Syria-focused research director at Lyon 2 University, France. "It will give them leverage on the regime." Iran was recently granted oil exploration contracts in eastern Syria.
2020-05-12 00:00:00
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