Japanese refineries have stopped importing Iranian oil after buying 15.3 million barrels between January and March ahead of the expiration of a temporary waiver on U.S. sanctions, according to industry sources and data on Refinitiv Eikon, Reuters reported.
The waiver, which allowed Japan to buy crude from Iran for an extra 180 days, expires in early May, Kallanish Energy understands. Japanese refiners want to ensure enough time for all cargoes already loaded to arrive in Japan and for payments to be completed.
The last Iranian oil cargo, onboard supertanker Kisogawa, is expected to arrive at Chiba, Japan, on April 9, data shows.
The U.S. in 2018 demanded nations cut all Iranian oil imports when it reimposed sanctions on the country’s petroleum sector on Nov. 4 over Tehran’s nuclear program.
However, Washington granted temporary exemptions to Iran’s biggest oil clients: Japan, China, India, South Korea, Taiwan, Italy, Greece and Turkey.
Refiners in Japan, the world’s fourth-biggest oil consumer, had stopped loading Iranian oil by mid-September, and only resumed loading in late January after banks received government assurances about processing payments to Iran.
Japan has loaded 15.3 million barrels of Iranian crude year-to-date, equivalent to 86,430 barrels per day during the six-month waiver period, according to Refinitiv data and Reuters calculations.
This represents a 33% drop from an average 129,300 Bpd Japanese companies imported between January and September last year before the sanctions began, according to Refinitiv data.
Japan has increased imports from the Middle East, Russia and the Americas as its Iranian imports fell, according to government data.
This post appeared first on Kallanish Energy News.