Tuesday, 26 June 2012

The Latest from Iran (26 June): The Oil Squeeze

0600 GMT: South Korea, a leading Asian consumer of Iranian oil, has confirmed that it will halt imports from 1 July,  following a European Union ban on insurance for tankers carrying Tehran crude.

South Korea took almost 10% of its oil from the Islamic Republic in 2011, but a joint statement from the Ministries of Economy, Finance, and Foreign Affairs said:

South Korea's imports of Iranian oil will be suspended, as the EU will suspend crude imports from Iran and also halt its insurance and reinsurance cover on the crude imports from July 1. The government will continue to make efforts to minimize impacts on domestic industry and the economy including oil supply, and exports to Iran, although the imports of Iranian oil are suspended.

A deputy minister Moon Jaedo, said, "Most of the Iranian oil has already been replaced by Iraq, Kuwait, Qatar and the United Arab Emirates, and also imports from the spot markets, although still some is left to be covered."

Iran's other Asian customers have all cut, but not suspended, purchases. The Japanese Government has authorised sovereign guarantees to cover Iranian shipments, China has asked Iran to deliver the crude, and India is allowing state refiners to import supplies, with Tehran arranging shipping and insurance from 1 July.

from EA WorldView: EA Iran

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