Iran loaded its first cargo of oil to Europe since international sanctions ended, signaling more supplies will add to the global glut of crude.
Iran is trying to rebuild its oil production after sanctions were lifted in January, with plans to boost output and exports by 1 MMbpd this year. Supply deals were signed with Total and Hellenic Petroleum SA of Greece. Oil prices have dropped 11% this year, partly on anticipation of the increased supplies.
Iran is planning three initial shipments to Europe carrying 4 MMbbl of oil with 2 MMbbl going to Total and the rest to companies from Spain and Russia, Roknoddin Javadi, managing director of National Iranian Oil Co., said on Saturday, according to the Iranian oil ministry’s news service Shana.