Wednesday, March 7, 2012

Sanctions Are Starting To Squeeze Iran's Oil Exports


Noose Tightens Around Iranian Oil Exports -- Washington Post

International sanctions on Iran are starting to pinch, and Tehran is scrambling to hang on to buyers for its crude oil exports.

In January, China, South Korea and Singapore sharply cut their oil purchases from Iran. Last month, Shipping Corp. of India canceled an Iranian shipment because its European insurers refused to provide coverage for the tanker, according to Lloyd’s List. And Japanese oil refiners have asked for clauses to be added to oil-purchase contracts so they can back out if they can’t obtain tanker insurance.

Read more ....

My Comment: While many in the West are optimistic that sanctions will impact Iran's economy and help in influencing the Iranian government to scale back or suspend their nuclear enrichment program .... I am not optimistic as I see Iran working hard to subvert these restrictions. My prediction .... Iran will find ways to circumvent international sanctions to sell their oil .... albeit at a lower cost to attract customers.

No comments: