Iranian oil stored on tankers at sea has risen to as much as 42 million barrels, the International Energy Agency
said Wednesday, June 13, Bloomberg
reported. The Islamic Republic added about 10 million barrels of floating storage by the end of last month, the IEA said in a report released Wednesday. The IEA also reported that U.S. and European Union sanctions will cut Iranian crude exports by 1 million barrels per day (bpd) this year to about 1.5 million bpd. The E.U. embargo that takes full effect July 1 is already curbing shipments beyond the continent because insurers won’t cover ships hauling the crude. Tehran may be offering long-term credit, effectively selling oil at a discount, the IEA said. Payments are being stymied by sanctions that block banks settling trades with the country from accessing the U.S. financial system.