Japan’s crude imports from Iran doubled in May despite sanctions

TEHRAN,June 29(MNA) – Japan’s crude imports from Iran more than doubled in May 2013 compared to May 2012 despite the sanctions imposed on Iran over its uranium enrichment program. Japan imported 221,523 barrels of crude per day from Iran in May, more than double the 99,236 barrels per day imported the same month a year ago, according to figures released Thursday by Japan’s Ministry of Finance. The May level was also up 99.2% from the 111,218 barrels per day imported from Iran in April, according to the report. The U.S. extended Japan’s exemption in March from sanctions on banks doing business with Iran for a third six-month term based on additional reductions in the volume of oil purchases from the country. Importers of Iranian oil must make continuous cuts in their shipments to win waivers to the sanctions every six months, and Japan's waiver is next up for renewal in September. The bulk of Iran's oil exports go to its top four buyers - China, India, Japan and South Korea - who have together raised their purchases in May to 1.13 million barrels per day (bpd), up 11 percent from a year ago, according to Reuters calculations from earlier data and Japan's oil import figures on Friday. Industry sources had expected a jump in Iranian imports after a one-off plunge in April to 7,549 bpd. Japan's Iran imports hit a nine-month low in April as refiners cut purchases because of uncertainty over whether sovereign insurance for tankers carrying Iranian oil would be extended beyond March 31, the end of Japan's fiscal year. For the first five months of 2013, Japan imported 197,351 bpd of Iranian crude, down 19.8 percent from the same period a year ago, according to Reuters calculations.