Iran has sold all crude oil being stored in Egypt's Sidi Kerir terminal and is sending two additional crude carriers from Kharg Island in the Persian Gulf to be lifted by purchasers from the Mediterranean Sea port, a senior Iranian oil official said.
This leaves Iran with about 4 million barrels of crude stored in vessels offshore its southern coast, the official, who spoke on condition of anonymity, told Dow Jones Newswires late Tuesday.
Iran, the Organization of Petroleum Exporting Countries' second-largest producer, last week had between 10 million and 12 million barrels of crude stored in vessels offshore Kharg Island and in onshore tanks in Rotterdam, Japan and Sidi Kerir.
The Islamic republic since sold 3 million barrels of crude Monday and finalized a sale for 2.5 million barrels Tuesday, all to western European customers, according to the official.
Traditional customers for Iranian crude oil include Royal Dutch Shell PLC (RDSA.LN), BP PLC (BP.LN), Repsol YPF SA (REP), Hyundai Corp. (011760.SE) and SK Holdings Co. Ltd. (003600.SE).
With all oil being stored in Egypt's Sidi Kerir terminal having been sold, Iran has sent two additional tankers carrying crude from storage offshore Kharg to the Egyptian port to meet additional demand, the official said.
"It takes about 12 days to reach (Sidi Kerir), and during those 12 days I think we will sell maybe 1 million barrels more from Kharg," the official added.
The crude Iran sold to western European customers on Monday and Tuesday was sold at a premium of more than $1 a barrel, the official said, adding the increase in sales was attributable to a temporary rise in crude prices.
Oil prices briefly increased Tuesday on the back of comments from Algerian Oil Minister and OPEC President Chakib Khelil, who said "a deep cut" would have to be made if the market was to be balanced "in one month."
"The rapid increase (in the price of crude) in the early trading hours (Tuesday) made demand rise really quickly," the official said, adding customers "expect OPEC to cut in January, so they want to buy as much as possible."
The official said due to the expected crude price rise after OPEC's meeting, most European customers will now lift the crude during the third week of December instead of purchasing and lifting it in early January as originally planned to avoid paying a tax on oil storage at the end of 2008.
"They think the price will go up rapidly so they can absorb the tax they'd have to pay," the official said.