• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 47 mins Could Venezuela become a net oil importer?
  • 5 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 2 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 8 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 2 hours Why is permian oil "locked in" when refineries abound?
  • 4 mins Could oil demand collapse rapidly? Yup, sure could.
  • 7 hours EU Leaders Set To Prolong Russia Sanctions Again
  • 33 mins Oil prices going down
  • 9 mins Gazprom Exports to EU Hit Record
  • 20 hours Teapots Cut U.S. Oil Shipments
  • 16 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 10 hours Saudi Arabia turns to solar
  • 2 hours EVs Could Help Coal Demand
  • 20 hours Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
  • 8 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 1 day Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
Core OPEC Ramps Up Production Ahead Of Meeting

Core OPEC Ramps Up Production Ahead Of Meeting

Saudi Arabia has been one…

OPEC Meeting Could End Without Decision

OPEC Meeting Could End Without Decision

The current disunity in OPEC…

James Burgess

James Burgess

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…

More Info

Iran to take Action Against the West by Banning Oil Exports to the EU?

Following the recent agreement by the EU to impose trade sanctions against Iran the Iranian parliament will debate a law that could halt all oil exports to the continent.

"On Sunday, parliament will have to approve a 'double emergency' bill calling for a halt in the export of Iranian oil to Europe starting next week," Hossein Ibrahimi, vice-chairman of parliament's national security and foreign policy committee, was quoted as saying.

The EU accounted for 18 per cent of Iranian crude oil sales in the first half of 2011, according to the US Energy Information Administration (EIA), making it Iran's second biggest customer after China. Deliberately declining that sort of revenue to their already struggling economy is a bold ploy, but seems to me a bit like cutting off your nose to spite your face.

Although having said that it would not surprise me either. Iran's conservative-dominated parliament has previously shown it is ready to take action against what it sees as hostility from the West.  In November a vote was passed to expel the British ambassador, and London had to withdraw all embassy staff when radical Iranians stormed the British embassy due to the new EU sanctions.

Things certainly might become difficult in Europe with the loss of Iranian oil. Let’s hope that OPEC supports us.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment
  • Philip Andrews on January 28 2012 said:
    Well, it kind of depends on a few factors such as;

    1) Will Iran be able to make up its lost sales to the EU by increased sales to India and China? And paying in gold to the detriment of the dollar?
    2) Will EU importers try to import Iranian oil through 3rd parties? If this is at all possible?
    3)Will the alternative suppliers be increasing their 'costs' for increasing their supplies to the EU to replace Iranian oil? Will non Iranian oil become even dearer?
    4)Oil is still a sellers market. Saudi oil production is said to be gradually declinming. They may actually have difficulty sustaining the effort to make up the loss of the 20% market share that Iranian oil is said to represent.
    5) Depending on how long these sanctions last, or more importantly how long they remain effective, if the EU decides to return to Iran, will Iran want to return to the EU? If so will her terms be much more severe?
    6) In the longer term Iran weill have control over Iraq oil, said to be potentially almost as great a resource as Saudi. Once the West comes to its senses over Iran, will it (the West) have to pay a price for its present folly with Iran? Saudi in decline, Iraq as yet with huge untapped potential; is the West in danger of shooting itself in the foot?

    7) Longer term again, whatever happens in Syria Iran will likely retain an influence once all the hulabaloo has died away. Iran may then take a leaf out of the Syrian rebels book in its dealings with The Gulf States and Saudi Anbar. More oil problems on the horizon there.
    Is managing Israel's paranoia over Iran's nuclear worth all this? or is there some darker more hidden agaenda between Iran and the West?
    Something doesn't quite add up here...

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News