Iran General NewsRefiners prepare for Iran oil embargo

Refiners prepare for Iran oil embargo

-

Wall Street Journal: European refiners are weighing the impact of a possible embargo on Iranian oil, the spokesman for their Brussels-based industry group said Friday, a day after the EU broadened sanctions on Iran but stopped short of an embargo.

The Wall Street Journal

By BENOIT FAUCON

LONDON—European refiners are weighing the impact of a possible embargo on Iranian oil, the spokesman for their Brussels-based industry group said Friday, a day after the EU broadened sanctions on Iran but stopped short of an embargo.

“We are consulting our members to evaluate” it, a spokesman for European refiners association Europia said, a sign that the oil industry is starting to take precautionary steps in case an embargo is implemented.

EU foreign ministers broadened sanctions against Iran on Thursday due to “serious and deepening concerns” about the country’s nuclear program. While the meeting didn’t result in an oil embargo, EU officials emphasized that such a move had strong support in Brussels.

EU foreign policy chief Catherine Ashton said an oil embargo was still “being debated,” and diplomats said some restrictions on Iranian oil imports were likely to be imposed in the coming months.

The EU said it would examine further embargoes on Iran’s energy, banking and transport sectors and make a decision by its next meeting of foreign ministers in January.

“The EU made very clear that it will not bow to Iran’s intimidation and bullying tactics,” British Foreign Secretary William Hague said on Thursday.

Proponents of the embargo said they were working to address the concerns of Greece and some other countries that fear an embargo would push prices up at a time when their economies are already struggling.

Iran exported 870,000 barrels a day to Europe in the second quarter, mostly to Spain, Italy and Greece, according to the International Energy Agency. Traders said they were taking precautions to have alternative supplies in place if an embargo is implemented.

A spokesman at Saras SpA, one of Italy’s largest refiners, said the company was “in routine talks with all our suppliers” regarding a possible need to replace Iranian crude.

The spokesman said 10% of the 75.3 million barrels it refined in the first nine months was crude oil from Iran. But, he added, “We don’t anticipate any supply problems,” and Saras won’t reduce capacity in case of Iranian oil embargo.

An embargo would squeeze refining margins, the spokesman said. Refining margins have already been under pressure this year and even twice turned negative after Libyan oil disruptions pushed up the price refiners pay for their crude.

Officials at other leading European refiners declined to comment, or said it was too soon to comment on a possible ban.

In a note Wednesday, Fitch Ratings said “the likely increase in oil prices that would result from a ban would be felt by all oil refiners, not just those that are big customers for Iranian oil.”

Latest news

Khayyam Satellite, Iran Regime’s New Tool To Back Up Global Terrorism

Last week, the Iranian regime’s media reported that the mullahs had been successful in launching a new satellite named...

A Tsunami of Malnutrition in Iran

The huge class gap in Iran is the result of the Iranian regime’s destructive policies. According to Mohammad Saleh...

Iran’s Regime Punishes People With Poverty To Hide Its Crime

The Iranian regime’s state-run Kayhan daily, the mouthpiece of its supreme leader Ali Khamenei, recently wrote that the regime...

Desperation and Unemployment Are Causing High Suicides Rates Among Youths in Iran

The sharp focus has recently been turned on Iran, once again, because of many bitter events. One such event...

Outcome of Iran Regime’s Corruption, High Number of Deaths in Natural Disasters

Sometimes numbers lose their mathematical meaning and become heralds of disasters. The number of 200 deaths in the village...

Iran Regime’s Oil Revenue Supports Terrorism

On August 2, John Kirby, the US National Security Council Coordinator for Strategic Communications at the White House, stated...

Must read

Thief hand cut off ‘before inmates’

Press Association: Authorities in Iran have amputated the hand...

Change in Iran could bring peaceful ties-Israel

Reuters: Peaceful relations between Israel and Iran would be...

You might also likeRELATED
Recommended to you