One of the unknowns in Donald Trump’s decision to restore sanctions on Iran’s petroleum exports is whether the U.S. will also restrict the country’s substantial sales of condensate.
The lack of clarity compounds a dilemma for Iran’s neighbor Dubai, potentially cutting off the emirate’s main refinery from the Middle East’s biggest supplier of condensate, a light oil found with natural gas. Dubai’s government-owned refiner Emirates National Oil Co. imports about three condensate cargoes a month from Iran, or the equivalent of more than 100,000 barrels a day, according to Bloomberg tanker tracking.
The last time it targeted Iran’s oil industry, the U.S. sought to restrict exports except those made to six, mainly Asian, buyers. Dubai reduced its condensate purchases from Iran, but some shipments kept flowing, and the emirate also bought from Qatar.