Results 1 to 2 of 2

Thread: Oil Industry Sees China Winning, West Losing from Iran Sanctions

  1. #1
    Account Inactive

    Join Date
    Sep 2009
    Last Online
    Teutonic Order Teutonic Order
    Thanks Thanks Given 
    Thanks Thanks Received 
    Thanked in
    2 Posts

    Oil Industry Sees China Winning, West Losing from Iran Sanctions

    Oil industry sees China winning, West losing from Iran sanctions

    The announced by the European Union that it will ban all Iranian oil imports and the US government’s plan to clamp down on nations using dollars to buy oil from that nation will not only cause hardship for consumers in the west, but artificially boost China and the Chinese economy, the oil industry has predicted.

    In an article published by Reuters, it was pointed out that Iran will continue to sell much the same volume of oil – 2.6 million barrels per day or around 3 percent of world supply – but almost all of it will flow to China.

    “And being pretty much Iran’s only remaining customer, Beijing will be able to negotiate a much reduced price,” the Reuters article continued.

    The EU will ban Iranian oil from July. The United States plans sanctions on Iran’s central bank and possibly its shipping firm. European headquartered oil firms such as France’s Total and Royal Dutch Shell have already abandoned Iranian oil purchases or are in the process of doing so.

    Japan and South Korea have signaled they may reduce purchases of Iranian oil to comply with U.S. sanctions designed to put pressure on Tehran over its nuclear program.

    That leaves a growing number of buyers competing for alternative supplies. Inevitably attention has turned to Saudi Arabia, the world’s biggest exporter and the only country that can quickly increase oil output and help the West avoid a price spike that would deal a severe economic blow.

    The IMF said this week that crude oil prices could rise 20 to 30 percent if Iran were to retaliate by halting its oil exports altogether. Oil industry executives meeting in Davos said energy markets can afford to lose half of Iran’s 2.6 million barrels per day. That would be roughly equivalent to supplies lost during Libya’s civil war in 2011. They are confident Saudi Arabia will fill the gap.

    “What we say is that oil is fungible. Iranian oil will still find its way into the market, to Asian markets, China and possibly at a lower price,” a top Saudi source told Reuters, speaking on condition of anonymity because of the sensitivity of the matter.

    “But if let’s say 50 percent of Iranian oil is lost, we have spare capacity, we have the capacity to replace it as Libya has shown,” he added.

    The chief of Saudi state oil monopoly Saudi Aramco, Khalid al-Falih, moved from one bilateral meeting to the next during the World Economic Forum this week. Over the past month or so the kingdom has received requests for additional oil from the European Union, Japan and South Korea. The European Union and Turkey buy almost a third of Iranian oil exports with the rest going to China, Japan, South Korea, India and South Africa.

    “As a regular conversation we talked about increased supplies. Saudi Aramco is always positive,” Jun Arai, the head of Japan’s Showa Shell, told Reuters.

  2. #2
    Senior Member
    Uwe Jens Lornsen's Avatar
    Join Date
    Sep 2017
    Last Online
    33 Minutes Ago @ 10:22 AM
    Prolonged Absence
    Germany Germany
    Schleswig-Holstein Schleswig-Holstein
    Zodiac Sign
    cons. old fashion worker class
    Philosophical Archaic Christian
    Thanks Thanks Given 
    Thanks Thanks Received 
    Thanked in
    271 Posts

    Sanctions November 2018

    New Sanctions the 4th of November on Iran by the USA ahead ,
    there are some workarounds in the making :

    The European Union wants to create a "Vehicle" to indirectly trade Iranian Oil .
    The creation of a special purpose vehicle that would allow the European Union (EU) to continue buying Iranian oil after the U.S. sanctions on Tehran return is politically risky and complicated, progressing very slowly, and will not be operational on November 5, the day on which American sanctions on Iran’s oil snap back, EU diplomats told AFP on Thursday.
    The main problem is , that nobody wants to host the clearing company , being afraid of further sanctions by the U.S.A. .
    My guess is they would find a host , Indonesia or Malaysia would come in mind .

    India got a "waiver" by the U.S. to further import Iranian Crude , but reduced down to 65% of
    the former amount .
    Last financial year, India imported some 22 million tons of Iranian crude and had plans to increase this to 30 million tons in the next financial year. Instead, it will have to cut them to between 14 and 15 million tons, the source told the Economic Times.
    Mk 10:18 What do you call me a good master, no-one is good .

    Gylfaginning 1.39 But on wine alone Odin in arms renowned Forever lives.

Similar Threads

  1. Replies: 3
    Last Post: Monday, November 26th, 2018, 12:29 PM
  2. Charlie Sheen is Winning. Chinese Are Losing.
    By Ediruc in forum Articles & Current Affairs
    Replies: 53
    Last Post: Tuesday, March 22nd, 2011, 11:45 PM
  3. Replies: 2
    Last Post: Thursday, January 6th, 2011, 01:24 AM
  4. Merkel to Support Iran Sanctions?
    By Carl in forum The German Countries
    Replies: 15
    Last Post: Sunday, November 8th, 2009, 03:35 AM

Tags for this Thread


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts