Iran’s oil stocks spiked by more than 3mn barrels in June, when compared to the previous month, reaching 33mn barrels.
Data from analysis firm Kayrros and cited by news agency Reuters suggested that inventories on Kharg Island led the increase with an extra 3.1mn barrels in its inventories. Stocks at Siri, Lavan and Bandar Abbas lifted only slightly.
International oil experts believe that Iran’s deposits could rise substantially once US sanctions kick in and the Islamic republic finds it difficult to export its oil production.
US President Donald Trump pulled his country out of the Joint Comprehensive Plan of Action regarding Iran’s alleged nuclear ambitions on May 8thand has re-imposed stringent hurdles to global trade.
Recent reports have indicated the Washington administration may allow waivers temporarily as nations wean themselves off Iranian imports but in the mid to longer term, it is generally expected that hundreds of thousands of daily output from Iran will be removed from the market.
Leading oil exporter and US ally Saudi Arabia, neighbouring UAE and the world’s biggest producer Russia are all intending to fill the gap with greater daily output.