• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 50 mins Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 3 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 8 hours Mr
  • 17 hours While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 5 hours Free market or Freeloading off the work of others?
  • 7 hours Marine based energy generation
  • 19 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 20 hours How to Create a Pandemic
  • 21 hours Apple to Bypass Internet and Beam Directly to Phones
  • 6 hours China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 12 hours Which producers will shut in first?
  • 19 hours Real Death Toll In CCP Virus May Be 12X Official Toll

Breaking News:

WTI Slides On Huge Crude Inventory Build

Renewables Boomed In 2019, But This Year May Be Different

Renewables Boomed In 2019, But This Year May Be Different

Renewable energy projects constituted three-quarters…

South Korea Become First Major Asian Customer to Halt Iranian Imports

South Korea Become First Major Asian Customer to Halt Iranian Imports

The EU embargo on Iranian oil is due to take effect on the 1st of July, but just before that date Ramin Mehmanparast, a spokesman for the Iranian Foreign Ministry, has issued a threat saying that if the embargo is allowed to work, it will have a “negative impact” on Tehrans’s negotiations over its nuclear program.

Last week in Moscow Iran met with six world powers to discuss its nuclear program, and yet again no progress was made in resolving the conflict. A “negative impact” would only make things even harder, drag the affair out for longer, and potentially have a larger effect on global oil prices.

Due to pressure from the US and EU on countries that import Iranian crude, the International Energy Agency says Iran is exporting only 1.5 million barrels a day, 40% less than six months ago.

One of the most profound effects of the EU embargo is the loss of insurance coverage for tankers carrying Iranian crude oil. Most tankers in the world are covered by Western protection and indemnity clubs, with the majority of brokers based in London. The loss of this coverage means that few countries are willing to import Iranian crude.

South Korea has just become the first of Iran’s major Asian customers to stop all oil purchases. In a joint statement by the economy, finance, and foreign affairs ministries, they announced it would halt all imports from the 1st of July due to the loss of insurance for tankers.

If more countries follow suit the embargo could have sufficient impact in order to force Iran back to the negotiating table with a bit more willingness to strike a deal. Well that’s that the West are hoping.

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage




Leave a comment
  • Philip Andrews on June 27 2012 said:
    "Japan will Provide Insurance to Iranian Tankers when EU Sanctions Take Effect"

    This could start a trend amongst Asian countries heavily dependant on Iranian oil. It is difficult to see how Iranian oil could be adequatelyy substituted for in the medium to long term.

    Embargoing it will leave too big a hole in the oil supply chain. Saudi can compensate for a while but there are limits. If Iranians can find ways to get around Western insurance 'sanctions', that would create an interesting situation for the sanctions regime.

Leave a comment

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