Potential Impacts on the Asian Oil Market Asian buyers of the election of Masoud Pezeshkian as President of Iran

The election of Masoud Pezeshkian as President of 🇮🇷 Iran may significantly impact Asian oil buyers by aiming to revive the nuclear agreement with the West and lift international sanctions. This could restore Iranian oil flows, stabilizing the Asian oil market, according to analysts and traders.

Potential Impacts on the Asian Oil Market Asian buyers, especially in 🇨🇳China, 🇯🇵 Japan, and 🇰🇷 South Korea, are monitoring possible changes in oil policy. Tushar Bansal of EY Parthenon notes that to affect winter oil prices, an agreement must be reached by September, potentially attracting foreign investment to Iran's oil fields.

Reactions from Asian Refineries

Japanese and South Korean refineries, major consumers of Iranian condensates, are cautiously optimistic. South Korea was a significant buyer of Iranian crude before the sanctions, purchasing 148 million barrels in 2017. Japanese refiners valued Iranian Heavy and Forozan crudes.

Outlook for China and India

Iran remains a key supplier of heavier crudes to China despite sanctions. A Beijing-based analyst predicts policy adjustments post-election could change oil export processes. 🇮🇳 Indian refiners are eager to resume imports of Iranian oil, which is traditionally vital to the country.

Commercial Partnerships

The election of reformist President Masoud Pezeshkian brings hope for the normalization of oil flows to Asia. If sanctions are lifted, Asian oil markets could stabilize, benefiting regional buyers. However, this depends on international negotiations and Pezeshkian's ability to manage Iran's political landscape.

Gyula Toth, 18 July 2024

Iranian reformist candidate Masoud Pezeshkian raises his fist as he arrives for his campaign rally, two days before a presidential election runoff following a first round marked by a historically low turnout, at a stadium in Tehran on July 3, 2024. (AFP)

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