As the US and EU trade sanctions draw closer Iran are looking to secure increased export volumes to their largest customers in Asia. China, the largest importer of Iranian Oil, has almost agreed a new deal for increased supply at a discount compared to market prices, and India is currently in discussions over increased shipments. Asia is generally supporting Iran and ignoring the threats from the US … except for Japan.
Three Japanese refiners are stalling on signing new contracts for 2012 with OPEC’s second largest oil producer. They are waiting for direction from their government, who in turn are waiting for an exemption from the US sanction that punishes any bank which does business with Iran. Exemption is only granted if the country is shown to drastically reduce its Iranian imports, therefore Japan has promised an 11 percent annual reduction. However according to Foreign Minister Koichiro Gemba negotiations are still proceeding with the US. The agreement is expected to be concluded by the end of February, leaving little time to finalise a deal with Iran before the existing contract expires in March.
By. James Burgess of Oilprice.com
James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…