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Page added on May 16, 2012
Iran Seen Losing 500000 Barrels of Oil Shipments Daily
Iran’s oil exports have the potential to fall another 300,000 to 500,000 barrels a day or more when the European Union’s embargo takes effect in July, according to Barclays Plc.
The decline will extend existing losses of 500,000 barrels a day, Barclays analysts led by Helima Croft in London said in an e-mailed report yesterday. Iranian exports may fall even further because of the unavailability of shipping insurance, she said.
“The risk from the lack of shipping reinsurance is that in a market in which fundamentals are set to tighten in coming months, any loss of Iranian output sustainably beyond 1.5 million barrels a day can provide a significant upside to prices,” the analysts said.
The EU banned the purchase, transportation, financing and insurance of Iranian oil. That affects 95 percent of the world’s tankers because they’re covered by the 13 members of the London- based International Group of P&I Clubs.
The U.S. and EU are trying to pressure Iran over its nuclear program, which they say is aimed at producing atomic weapons. The government in Tehran, facing four sets of United Nations sanctions, says the project is for civilian purposes.
3 Comments on "Iran Seen Losing 500000 Barrels of Oil Shipments Daily"
BillT on Thu, 17th May 2012 1:57 am
“have the potential” does not mean the same as has happened. There is no guarantee that the ’embargo” will work. None. There are already dozens of ‘exceptions’ to keep NATO countries afloat. And then there is India that said they will basically ignore the embargo. And China. and Japan. And…
Yes, Iranian oil may sell for less while this is going on, but they will not lack buyers, paying in gold or rupees or any other currency or trade that Iran accepts. All it will do is drive the dollar farther out of position as the world’s reserve currency. When that happens, it is ‘game over’ for the Empire.
Kenz300 on Fri, 18th May 2012 2:51 pm
Every country needs to develop a plan to balance its population with its resources of food, water, oil and jobs. Economic security and national security will depend on it. Alternative energy source like wind, solar, wave energy, geothermal and second generation biofuels made from algae, cellulose and waste can all help provide local energy sources,local jobs and greater energy security.
Arthur on Fri, 18th May 2012 8:41 pm
Every barrel Iran does not sell now, it will sell later at much higher prices.