Iran: Oil Still Flowing to Europe (INN) ISRAEL NATIONAL NEWS) By Gavriel Queenann 02/15/12)
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Iran´s Oil Ministry denied Tehran´s state media reports that the
Islamic Republic is stopping its crude exports to six European
countries on Wednesday.
"We deny this report ... If such a decision is made, it will be
announced by Iran´s Supreme National Security Council," a spokesman
for the ministry told reporters.
Iran´s English language Press TV had earlier said Tehran has stopped
exporting oil to France, Portugal, Italy, Greece, Netherlands and
The move immediately sparked a one percent rise in the price of crude
oil on world markets, sending a cost of barrel of crude to more than
Iran has insisted the Western sanctions will backfire because it can
make up for the lost sales by exporting to other countries.
It also has warned that higher oil prices could wreak havoc with the
fragile Western economies, where some countries in Europe already are
in a recession.
But analysts say Tehran is in no position to cut exports to Europe
and that the rapid denunciation of the Press TV report proves Iran´s
oil officials know it.
In recent weeks, the Iranian rial has plummeted, forcing Iranian
authorities to threaten speculators in a desperate bid to stabilize
the devaluating currency.
As a result, Iran recently defaulted on payments to India for
shipments of rice, a commodity it previously purchased without
difficulty. Iranís imports of goods such as palm oil, tea and wheat
are all experiencing similar disruptions.
In response, the Iranian regime has increasingly turned toward
barter, offering commodities such as gold and oil in lieu of payment
for its foreign debts. But that is not a universal salve and some
providers will only settle for cash.
The problems have gotten so severe that Iranís firebrand president,
Mahmoud Ahmadinejad, has been summoned before the countryís
parliament in recent days to account for his governmentís economic
Additionally, a bombing in Delhi targeting Israeli diplomats has
tested India´s determination to ignore western sanctions on the
Islamic Republic and continue buying oil from Tehran.
With over USD 10 billion in trade with Iran on the line senior Indian
officials are playing it safe. and have yet to blame Tehran for the
But according to reports in India´s press intelligence officials in
Delhi suspect that Iran used local terrorists carry out Monday´s
Officials in Delhi, who purchase 12 percent of Iran´s exportable oil,
say there will be "consequences" for Tehran if they are found
culpable for the attack.
Amid the Delhi fallout, Saudi Arabia - India´s largest oil provider
and the only nation with capacity to make up a serious oil shortfall -
offered to replace Iran´s oil exports.
India´s defense minister was reported to be in Riyadh on Tuesday for
a round of meetings with his Saudi counterpart. Oil was said to be on
their agenda. (IsraelNationalNews © 2012 02/15/12)
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