Iran Cuts own Throat, Stops Oil Exports to EU

via Iran ‘stops oil exports’ to UK and France – Middle East – Al Jazeera English.

Iran has stopped selling crude to British and French companies, the oil ministry has said, in a retaliatory measure against fresh EU sanctions on the Islamic state’s lifeblood, oil.

Most countries in the EU have stockpiles that will last them several months, until supplies from Saudi Arabia and others can catch up with the shortfall.  Hardest hit will be Greece, the debt-ridden nation.

Motor Oil Hellas of Greece was thought to have cut out Iranian crude altogether and compatriot Hellenic Petroleum along with Spain’s Cepsa and Repsol  were curbing imports from Iran.

Iran was supplying more than 700,000 barrels per day (bpd)  to the EU plus Turkey in 2011, industry sources said.

By the start of this year imports had sunk to about 650,000 bpd as some customers cut back in anticipation of an EU ban.

Will Saudi Arabia, Qatar, and other Middle Eastern oil-rich states be able to make up the short-fall?  How much will the price of oil rise?   How will the resulting increase in gasoline and foodstuff costs affect the worldwide economic crisis?

And in the United States, how will Newt Gingrich be able to provide $2.50/gallon gas, as he recently promised?  Doesn’t he realize that world markets are a little beyond his control?

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