Cepsa Resumes Iranian Oil Supplies to Spain

Spanish refiner Cepsa will ship a 1-million barrel cargo of Iranian oil to its refineries, according to vessel agents' data and market players' information on Wednesday.

 

Global oil markets, already oversupplied, have been jittery over the return of Iranian oil after the lifting of international sanctions imposed over Tehran's nuclear programme.

 

According to Reuters shipping data, epsa has chartered the suezmax Monte Toledo which will load at Iran's Kharg Island for delivery to the Spanish ports of Huelva and Algeciras.

 

Spain and Iran are considering jointly building an oil refinery in Algeciras.

 

A Cepsa spokeswoman said it was not the company's policy to give any details about specific commercial operations.

 

Iran is on track to raise oil production by 500,000 barrels per day after the lifting of Western sanctions last month. Reuters shipping data shows that since sanctions were removed a number of vessels have been tentatively fixed to sail to various locations in Europe and the Mediterranean.

 

Trading sources said Litasco, the trading arm of Russia's Lukoil, looked set to become the first buyer in Europe since the lifting of sanctions.