European Oil Traders Corner Iranian Gasoline Markets

 

Europe’s trading giants Guvnor and Vitol have organized their first shipments of gasoline to Iran as they vie for Iranian market share in the early phase of this game.

While Vitol delivered its first supply in March, Guvnor sent its first shipment in February, according to shipping sources, as reported by Platts. Both loaded 35,000 MT of gasoline, in medium range tankers from the UAE port of Fujairah and discharged at Bandar Abbas in Iran.

Iran exports condensates and imports gasoline, but even after lifting of sanctions, the U.S. public and U.S. corporations are still banned from conducting business with Iran. Firms are sceptical about doing business with Iran due to insurance- and banking-related issues, thereby limiting Iran’s ability to reach its targeted output.

However, large trading firms such as Switzerland-based Guvnor and Geneva-based Vitol are utilizing this opportunity to gain a foothold in the Iranian oil supply.

Vitol paid around $260,000 for the Italian-flagged medium range tanker, Alessandra Bottiglieri, whereas, Gunvor's shipping arm Clearlake paid around $290,000 for the Maersk Messina, according to Platts sources, for their respective supply.

The insurance in the shipping industry is dominated by a group of 13 major protection and indemnity clubs under the umbrella of the International Group of P&I Clubs. Most of the companies, which provide re-insurance, are based in the U.S., therefore, many ship owners are reluctant to supply to Iran.