• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 2 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 3 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 2 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 2 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 2 days Modest drop in oil price: SPRs vs US crude inventory build
  • 2 days 2019 - Attack on Saudi Oil Facilities.
  • 4 days Ukrainian Maidan after 8 years
  • 4 days Peak oil - demand vs production
  • 5 days "How the CO2 shortage is impacting the food and drink sector" - Specialty Food Magazine
  • 5 days NordStream2
  • 5 days "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani

Japanese Refiners Stop Buying Iran Oil Ahead Of Sanctions

Japanese refiners have stopped buying Iranian crude ahead of the November 4 deadline set by Washington to all countries doing business with Iran before economic sanctions return. Reuters quoted today the head of the Petroleum Association of Japan as saying, “It is my view that each firm is taking the same stance and temporarily suspending (the loading) and watching the situation carefully.”

Japan is one of Iran’s largest oil importers, but it is also the United States’ staunchest ally in Asia—and the combination of the two has not worked to Tokyo’s advantage. While the government has been trying to secure a waiver from the U.S. State Department, the Japanese economy seems to be dependent enough on U.S. lending to make local refiners extra-cautious.

Reuters confirmed the sentiment by noting many Japanese refiners had resigned themselves to the reality that they must stop importing Iranian crude and instead, look for feedstock elsewhere. Iran currently accounts for 5 percent of Japan’s crude oil intake, and as per PAJ’s chief, Takashi Tsukioka, Tokyo will try to maintain a good relationship with Tehran despite the sanctions. How realistic this is remains to be seen.

The last time Iran was the subject of sanctions, Japan curbed its imports of Iranian crude. It did not, however, shut them down completely. Now, it seems like it might have to, unless Washington grants Japanese refiners a waiver. So far, U.S. officials have been guarded about the possibility of granting sanction waivers, although the possibility remains, on a case-by-case basis, as per an earlier statement from the State Department.

Although Japan, along with South Korea, is an important buyer of Iranian crude, which Tehran has done its best to keep on its books by deepening its sales discounts, China is the country that Tehran has pinned most its hopes on. “If China . . . buys Iran’s oil, we can resist the U.S.,” one Iranian analyst told the Financial Times in July, amid reports of import cuts among Iran’s Asian clients. “China is the only country which can tell the US off.”

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News