Monday, March 5, 2012

Iran likely to cut oil exports to Belgium , Netherlands and Czech Republic as these countries haven't agreed to signing long term contracts and committing to payment on time

http://www.mehrnews.com/en/newsdetail.aspx?NewsID=1552336


Iran may stop oil exports to Belgium, Czech Republic, Netherlands
TEHRAN, March 5 (MNA) – After France and Britain, the Iranian Oil Ministry may also decide to stop oil exports to the three European countries of Belgium, the Czech Republic and the Netherlands, the Mehr News Agency has learnt.

The Iranian Oil Ministry has given ultimatums to certain European countries including Italy, Portugal, the Netherlands, Germany, Greece, Spain, Belgium and the Czech Republic setting new conditions for buying the Iranian oil.
Iran’s main conditions are that contracts for buying oil should be 3-5 years and that payments should be made on time.
Semi-official reports indicate that if Belgium, the Czech Republic and the Netherlands do not meet Iran’s preconditions the Oil Ministry will soon stop selling crude to them.
Iran has already stopped oil exports to France and Britain for their hostile policies toward Iran.


and as the oil gets cut off to europe , closing the Strait of Hormuz could really get that oil price jumping....


http://www.businessinsider.com/shipping-ceo-iran-could-send-oil-to-440barrel-2012-3


The scariest Iran scenario yet comes from Bob Bandos, CEO of marine logistics and services company GAC North America.
Bandos tells Pierre Bertrand of the International Business Times:
[T]ankers can haul 1.8 million barrels of oil a day through the strait. If that supply is choked off, the effect would be similar to the fuel shortages of the 1970s - but more extreme, Bandos said.
"That would be nothing compared to this," Bandos said, who added the shortage would be global.
If the 1973 embargo experience repeats itself, the price of a barrel of oil could soar to $440 a barrel.
This scenario is more bearish than we've heard from most banks. Societe Generale, for instance, said oil could rise to $200 were the Strait closed.


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