Iran Crude Ban Difficult Without India, China

Discussion in 'Foreign Relations' started by LETHALFORCE, Feb 7, 2012.


    LETHALFORCE Moderator Moderator

    Feb 16, 2009
    Likes Received:
    Iran Crude Ban Difficult Without India, China: Chart of the Day - Businessweek

    The U.S. and European Union may struggle to enforce a ban on Iranian crude because of Asia’s reliance on supplies from the Persian Gulf state, according to Global Insight Inc.

    The CHART OF THE DAY shows China, Japan, India and South Korea, Asia’s four largest economies, were the biggest users of Iran’s oil in the first half of last year, relying on the Islamic Republic for 1.46 million barrels a day, or 59 percent of its exports, according to the U.S. Energy Department. Germany, France and the U.K., the EU’s biggest economies, together imported 77,000 barrels of Iranian crude.

    “It will be difficult to enforce a ban as India and China are not willing to back the ban,” Simon Wardell, energy research manager at London-based Global Insight Inc., said by telephone. “Iran will still be able to find buyers if they make concessions and lower their prices.”

    The EU agreed on Jan. 23 to ban oil imports from Iran, the world’s fourth-largest producer, starting July 1 to ratchet up pressure on the nation’s nuclear program. U.S. President Barack Obama signed a bill on Dec. 31 that tightens sanctions by denying access to the U.S. financial system to any foreign bank that conducts business with the Central Bank of Iran. India won’t cut back on imports from Iran, Finance Minister Pranab Mukherjee said Jan. 29. China “opposes imposing pressure and sanctions,” a vice foreign minister said last month.

    Iran has “no concerns whatsoever for finding new customers,” the country’s oil ministry said Jan. 23. “The Iranian nation has many times proved that it would never yield to pressure and unjust moves.”

    Brent crude posted its third annual gain in 2011 on speculation escalating tension in the Middle East would disrupt supplies amid a recovery in the U.S. economy. The benchmark has risen 5.5 percent this year.

Share This Page