Iran became the top crude exporter to France in September, for the first time since the country began to export oil there post-sanctions, in the first quarter of this year. It displaced Saudi Arabian and Iraqi cargoes, which both posted recent lows for market share.
Iranian oil exports to France hit just over 200,000 b/d in September, putting the country's crude shipments ahead of competitors Nigeria with 185,000 b/d, followed by Russia and then Kazakhstan. Iran had not exported any crude to France until April this year, because of US and EU sanctions surrounding its nuclear programme. Iran has increased production by more than 800,000 b/d since sanctions ended, hitting 3.68mn b/d in October. The country returned to global oil markets at a time when other major producers were locked in a battle for market share and it has made major inroads into French supplies.
As Iranian oil shipments to France have grown rivals have been squeezed out. Saudi Arabian crude cargoes dropped to 80,000 b/d in September, the lowest level for Saudi shipments to France since December 2012. The level was also Saudi Arabia's lowest market share of French crude imports for any month back to January 2012, down to just 7.1pc (see chart). As Europe remains well supplied with crude, other producing countries are also finding increased competition tough. Iraqi cargoes to France tumbled to just 1,000 b/d in September, compared with 110,000 b/d a year earlier.
Although Saudi Arabia remained the biggest crude supplier to France in the first three quarters of this year, with 160,000 b/d, this was down by 29pc from 225,000 b/d in the same period a year earlier. It was ahead of Kazakhstan with 140,000 b/d, down by 14pc on the year, Russia with 120,000 b/d, up by 27pc, and Nigeria with 115,000 b/d, down by 12pc.
Second tier suppliers such as Algeria, Angola and Azerbaijan maintained supplies close to flat on the same period last year, at around 60,000–80,000 b/d. But there was growth from Norway, which hiked its crude exports to France to 70,000 b/d in January to September, close to double that in the first three quarters of 2015.
France has also been importing rising volumes of US crude. While still relatively small, September posted the highest level of imports since the US began shipping oil across the Atlantic to Europe, around the turn of this year. France imported 35,000 b/d of US crude in September and has unloaded 15,000 b/d since May when the first US cargoes arrived, albeit this likely amounts to only four or five separate cargoes in total.
Total French crude imports in September were just over 1.1mn b/d, down by 10pc compared with September 2015. In the first three quarters of the year, French crude imports were just under 1.1mn b/d, down by 3pc compared with January–September 2015.
