A Decision Expected in January
Diplomats from the US, the EU and other countries like Australia, Japan and South Korea, the so-called “like-minded nations,” gathered in Rome today to discuss further sanctions against Iran, Reuters reported. The Italian foreign ministry is hosting the gathering.
The major topic of discussion is a possible oil embargo against Iran. Diplomats told Reuters that a decision could be made when the EU foreign ministers next meet in January.
Iran could still sell its crude after the embargo to customers in countries like China and India, which are among Iran’s major importers. But if the Central Bank of Iran (CBI) is added to the sanctions list, as already voted through by the US Congress, then those customers will have serious difficulties to pay for the crude. And a combination of EU embargo and sanctions on CBI could seriously disrupt Iran’s oil exports.
UPDATE: The Wall Street Journal, citing unidentified US, European and Arab diplomats, reported that Iran's oil exports and global energy prices were key issues on the table. An Italian foreign ministry official said the participants stressed the urgent need for Iran to satisfy world concerns about its nuclear program [AP, 20 December].
A collection of useless fools meeting to cut their noses to spite their ugly faces.I believe Iran doesn't even need to do much to counter these idiots.Give them a rope long enough and they'll all hang themselves gracefully in their collective irrelevance.
ReplyDeleteEven the Japanese have come out to reject this madness.
US + EU + PGCC dictator = stupidity that keeps giving.
Nothing to see here folks.Move along ;)
I believe the Iranian government is much more rational than what you suggest. It would be foolish not to take this group of countries gathering in Rome today seriously. Sloganeering would not resolve the issues facing Iran; new way of thinking and concrete actions on how to cope with the country’s growing isolation are needed to end the current impasse.
ReplyDeleteMaybe China and India can exchange Noodles and Rice in return for Iran's oil. :)
ReplyDeleteAnd to Anon 1:56 pm if they are so ugly and useless (which ironically reminds me of the mullahs and their followers)why is it they can force the banks to stop doing business with CBI therefore Iran can not receive cash for oil?
Dear Mr Uskowi
ReplyDeleteIf you want to pay 200 $ per Barrel oil, be hopful that rthis Gathering is more successful than other.
The World cannot abstain from iran oil and Gas.
This comment has been removed by a blog administrator.
ReplyDeleteAnon December 20, 2011 1:56 PM,
ReplyDeleteEU gets 18% of their oil imports from Iran, many think that they can reduce this to 10% within a year.
I would bet that SA, Libya alone could replace that quickly and your Russian buddies and Hugo C will be glad to sell more to the EU too!
More and more oil from Canada & USA being refined and leaving the US gulf coast to the EU as diesel & petro!
Much more oil coming online, you may want to do your homework, even Israel is getting ready to sell LNG to India within a few years!
The leaders that you bow your head to everyday in Iran are making your country become irrelevant.
You better hope that Kirk-Menendez does not pass/become law, (in its present form) or Iran's Central Bank & oil industry will start feeling major pain within six months!
Will Iran have to sell its oil at a cheaper price to China?
Anon 3:36 PM
ReplyDeleteWhat syndrome have you got then?
The mullah lovers syndrome I presume.
The facts are that the truth hurts if you don't like reading the truth then go and read the countless nonsense that comes from the IRI media.
Spain's Repsol says Iranian crude easy to replace
ReplyDeleteTue Dec 20, 2011 9:23am EST
* Saudi, Russia seen as alternative supply sources
* Inks joint venture with Moscow-based Alliance Oil
http://www.reuters.com/article/2011/12/20/energy-iran-repsol-idUSL6E7NK31C20111220
Anon 3:36 PM.....Iran is already destroyed by the very same regime that you so proudly defend.This has been the most anti Iranian regime in the countries history.If you are Iranian you would know this but some how I doubt it.
ReplyDeleteIran and Iranians will only prevail when they dispose of this anti Iranian entity into the rubbish bin of history where it definitely belongs.
Indian refiners explore replacing Iranian oil-
ReplyDeleteDec 18, 2011, 04.22PM ISTNEW DELHI: Indian companies have begun talks with alternative suppliers to slowly replace Iranian oil, fearing their current mechanism for payments to Tehran for some 350,000 barrels a day (bpd) via Turkey could soon succumb to sanctions, industry sources said.
Plans for fresh US financial sanctions on Tehran have worried its Asian customers who fear they will have no way to pay for crude imports from Iran.
India, which a year ago lost one conduit for payments, is already looking for alternatives as Halkbank, the Turkish bank handling some transfers, refused to open an account for Indian refinery Bharat Petroleum.
Indian refiners are also upset that Iran has asked them to pay about $15 million as interest on delayed payments in the first seven months of 2011 when they could not transfer funds.
India's biggest refiner, Indian Oil Corp., has sought an additional two million barrels of crude from Saudi Arabia for January, a source privy to the development said. IOC buys about 30,000 bpd oil from Iran.
http://timesofindia.indiatimes.com/business/india-business/Indian-refiners-explore-replacing-Iranian-oil-sources/articleshow/11155593.cms
Iran's endgame is long overdue
ReplyDeleteJoel Brinkley, © 2011 Joel Brinkley
Sunday, December 18, 2011
Now the most important discussion is under way in Europe. Over the past week, European leaders have been debating whether to impose an oil embargo on Iran. The EU imports 450,000 barrels of Iranian oil each day, about 20 percent of Iran's output.
At a meeting of EU foreign ministers this month, several states, including Britain, France and Germany, advocated an oil embargo, but others balked. Greece, for example, complained that while the state's economy is in crisis, it can't go prospecting to replace Iran's oil. The EU said it would make a decision next month, and statements from Tehran last weekend show the regime is terrified of an embargo.
But now Saudi Arabia - Iran's hated enemy - is ramping up production, specifically to replace Europe's Iranian oil. Sen. Mark Kirk, an Illinois Republican, said he won a commitment from the Saudi ambassador in Washington to increase production, his spokesman told me. And in fact, every day now, Saudi Arabia is pumping 600,000 barrels above normal production - the highest output in decades - causing some refineries to throw up their hands and say they can't take any more.
"Asian refiners are not taking extra Saudi barrels," energy analyst Alex Yap told Reuters. A South Korea refinery said it was actually cutting its output because of poor economic conditions in the region.
What's more, Libya is increasing output now that the fighting there is over, and the International Energy Agency reported that during the third quarter of this year, Iraq produced 540,000 more barrels per day than it had a year earlier.
In other words, the world is awash in oil - even as weak economies are reducing demand worldwide. Europe can impose a total oil embargo on Iran and easily replace that oil from other producers.
As if to underscore the point - and to prod the West to act - Saudi Arabia hinted recently that it would consider building its own nuclear weapons if the time comes that both Iran and Israel have them.
The United States also is pushing South Korea and other customers of Iran to stop buying. And earlier this month, the U.S. Senate voted 100-0 to sanction any financial institution worldwide that does business with the Bank of Iran.
For central banks, the prohibition relates only to oil purchases. The House is expected to pass it, too; Iran is a bipartisan concern. With that, Iran will have trouble getting paid for its oil exports.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/12/17/IN4A1MBUGR.DTL#ixzz1h7Ez7Jsj
We will accept all types of comments except the ones using foul language or the ones which are mostly personal attacks on other commentators and authors. That we consider disgraceful and not helping the debate on the issue.
ReplyDeleteAnon 3:34 PM,
ReplyDeleteI certainly do not like to pay for a $200 or more per barrel oil. In my comments, I was arguing for rationality and finding ways to avoid conflict.
Hi Mr. Uskowi
ReplyDeleteI am long-reader of your blog. Very detailed, very accurate.
I find this post on IRGC navy - http://www.globalbearings.net/2011/12/view-irgc-naval-bases-in-larger-map.html
Is this accurate stuff?
@ Dear Anti iranian Grposter
ReplyDeleteTo believe the Iranian oil can be replaced by Saudi , Liobya or somewhere else is crazy
The iran is the second or third largest oil anbd Gas Producer , you can not replace it. except you pay 200$ per Barrel.
in This time of Financial and dept crisis ?
Japanse , south Corea of course China and India re refused to stop
buy oil from Iran. The european wil also no do it.
Anon 6:03 PM.....It's alright the world will pay $200 a barrel and of course the Islamic regime not receiving a penny of it as long as the Islamic regime is destroyed.
ReplyDeleteIt's a price well worth paying.
Anon 6:36 PM
ReplyDeleteYou must be living in cloud cuckoo land if you think the world will sacrifice their fragile economy by paying $200 a barrel.
Eni Can Meet Refinery Needs Without Iran Oil in Case of Ban
ReplyDeleteBy Anthony DiPaola - Dec 8, 2011 5:01 AM CT
Eni SpA (ENI), Italy’s largest oil company, can run its refineries without Iranian crude if the European Union decides to ban fuel imports from the Persian Gulf state, its chief executive officer said.
“In terms of the use of our own refineries I don’t see major problems,” Paolo Scaroni said today in Doha, Qatar. “Yes, there is a problem of quality of crude, so we should make some shift, but our refineries will be certainly able to cope with these issues.”
The EU agreed this month to tighten sanctions on Iran, blacklisting certain individuals and companies, while falling short of authorizing an immediate ban on Iranian crude imports amid reservations from Greece. The U.S. approved additional curbs on Iran’s oil industry on Nov. 21.
Eni is more concerned about the crude it receives from Iran as payment for past production there, Scaroni said. The company is owed less than $2 billion from the Islamic Republic for past activities, he said.
“We feel this kind of transaction will be exempted from any ban,” Scaroni said at a press conference at the World Petroleum Congress in the Qatari capital. “There is a difference between importing crude and receiving crude as payment for previous activity.”
Scaroni’s comments echo those of Total SA (FP)’s CEO Christophe de Margerie. A ban would only create a temporary disruption as buyers of Iranian crude adjusted their refineries to alternative grades, de Margerie said yesterday in Doha. An oil ban wouldn’t hurt Iran, he said.
http://www.bloomberg.com/news/2011-12-08/eni-can-meet-refinery-needs-without-iran-oil-in-case-of-ban-1-.html
No one needs Iranian oil, which doesn't even bring that much money. Iran doesn't even export 1/5 of what Saudi Arabia exports.
ReplyDeleteIran should be refining its own oil any way, that's what advanced countries do.
Khuzestan and Kharg can be occupied in a military conflict with US and Nato by them and a large level of Iranian oil production maintained. There will be an initial psycological effect with very hikes in oil and Energy prices but if the US and Nato decide that the price of accepting an Iran with an atomic bomb is higher, they will not hesitate and they know how to prepare themselves and their own population. Just like they did prior to the invasion of Iraq. There will be some demonstrations on the streets of London and some European cities but that's it.
ReplyDeleteThe real loosers will be the Iranian people and all the damaged infrastructure that has been built after the war with Iraq and billions of Iranian petro dollars that need to be spent again to re-build the country. That is why the Mullahs are the traitors if they do not negotiate with the US and Europe.
China bid to force Iran to sell cheaper crude
ReplyDeleteBeijing: 11 hours and 49 minutes ago
China has made an audacious move to force Iran to sell it cheaper crude, disrupting the flow of over 10 percent of the Islamic Republic's exports by cutting January imports in half.
In contrast to other top Asian buyers worried about what sanctions mean for crude flows from the world's fifth-largest exporter, China has shown no public qualms about the risk that a disruption will drive up the cost of oil.
The world's second-largest crude importer has chosen its moment for hard bargaining. Iran is facing the threat of fresh sanctions from the US and European Union over its nuclear programme that could prevent Asian refiners from paying for Iran's oil, and European refiners from buying it.
With fewer buyers Iran will face a stark choice: either sell more to top buyer China, or cut the exports that provide Tehran's economic lifeline.
China knows it is Iran's buyer of last resort. So when Iranian negotiators refused to budge on their demand for tougher terms on 2012 oil sales, refiner Sinopec responded by cutting its January purchases by about 285,000 barrels per day.
That is over half of the near 550,000 bpd that China has been buying on annual contract this year and over 10 percent of Iran's 2.4 million bpd of exports.
http://www.tradearabia.com/news/OGN_209854.html
Anon 9:22 AM
ReplyDeleteKhuzestan and Kharg can be occupied in a military conflict with US and Nato by them and a large level of Iranian oil production maintained.
Not if the Iranian insurgents can help it.
The real loosers will be the Iranian people and all the damaged infrastructure that has been built after the war with Iraq and billions of Iranian petro dollars that need to be spent again to re-build the country.
I disagree. The real losers are the U.S. taxpayers since they will be obliged to pick up the tab for damage caused by their own country, just as they have always done for Afghanistan and Iraq.
Colin Powell said it succinctly to President Bush when the U.S. invades Iraq: "If you break it, you own it."
That is why the Mullahs are the traitors if they do not negotiate with the US and Europe.
On the contrary, they are traitors if they DO negotiate with the US and Europe. Since negotiation process will inevitably involve compromise, there is good chance that one side will gain at the expense of the other side and that beneficiary certainly won't be the one you deemed traitors.
Wow, the Rial is down vs. the USD over 17% in three days!
ReplyDeleteInflation will destroy Iran.
Why only Iran ,the west should stop importing oil from every Muslim countries and die .Or, the puppet Monarchs should be executed and democratic Arab countries should stop the oil supply to the west. The west hate Muslims so much , why do we keep supplying oil to them ? China , India , Russia and other Pacific nation have more potential to deliver today .
ReplyDeleteAnon 12:51 PM December 21
ReplyDeleteThat was expected with China after all they look out for their own benefit.But try telling that to the morons that support the Islamic regime.If this is correct it will be a huge blow against the fascist Islamist in Iran.
Keep up the good work.
Anon 6:11 PM
ReplyDeleteInflation will destroy Iran.
Only through Iranian government's inaction will inflation destroy Iran, but fortunately, that's not going to happen as Iran is no stranger to inflation. They will find a way to curb the inflation. Expect to see inflation fall away in the year 2012.
Anon 6:36 PM
ReplyDeleteIt's a price well worth paying.
Maybe to you, but the rest of the world who are struggling to make ends meet don't share your sentiment.
Anon 7:31 PM is right. You are living in cloud cuckoo land.
Anon 6:09 PM
ReplyDeleteAs I mentioned earlier it's a price well worth paying.
Now if you want to look for cloud cuckoo land look no further than your dear Islamic repugnant because there you have a regime of religious fascism which executes children stones women hangs gays executes political prisoners and calls them drug dealers takes eyes out of eye sockets cuts tongues out and forces women to be second class citizens.Executes and persecutes religious minorities arrests peaceful protesters imprisons them rapes tortures and murders them then charges their families for the return of their loved ones corpses or losses their bodies into unknown and unmarked graves and then they call that Islamic democracy.
Now the question I ask you is this.What makes a person want to support such a inhuman and vile regime akin to putting people in gas chambers and supporting such vile acts?
And by the way I'm Iranian so don't play that "Zionist" nonsense game on me.