• 4 minutes Some Good News on Climate Change Maybe
  • 7 minutes Cuba Charges U.S. Moving Special Forces, Preparing Venezuelan Intervention
  • 12 minutes Washington Eyes Crackdown On OPEC
  • 15 minutes Solar and Wind Will Not "Save" the Climate
  • 6 hours L.A. Mayor Ditches Gas Plant Plans
  • 3 hours Prospective Cause of Little Ice Age
  • 2 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 12 hours is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 9 hours students walk out of school in protest of climate change
  • 1 day Most Wanted Man In Latin America For AP Agency: Maduro Reveals Secret Meetings With US Envoy
  • 13 hours Ford In Big Trouble: Three Recalls In North America
  • 1 day Amazon’s Exit Could Scare Off Tech Companies From New York
  • 2 days And the War on LNG is Now On
  • 13 hours Why Is Japan Not a Leader in Renewables?
  • 10 hours Is the Green race a race from energy dependence.
  • 1 day And for the final post in this series of 3: we’ll have a look at the Decline Rates in the Permian
A Big Week For Oil Bulls

A Big Week For Oil Bulls

It’s been a great week…

Tax Cuts Or Not, Mexico’s Pemex Is Doomed

Tax Cuts Or Not, Mexico’s Pemex Is Doomed

Mexico’s new president Andres Manuel…

The U.S. Has Granted Japan and 10 EU Countries Exemption from Iran Sanctions

It is well known that as part of a coordinated campaign the US and EU have pressured Iran with their sanctions to restrict any country importing Iranian crude oil. Under the sanctions law president Obama must cut off foreign financial institutions, who continue to trade with Iran’s central bank without an official exemption, from the US financial system.

Exemptions are available to countries that make significant reductions the amount of Iran crude that they import before the end of June. No official figure has been released to indicate what exactly constitutes a significant reduction, but anonymous officials within the Obama administration have stated that depending on the individual nation’s circumstances they are looking for about 15%.

Yesterday the secretary of state Hillary Clinton announced that Japan, along with 10 European Union countries have earned exemption from the sanctions for a period of 180 days. She praised the efforts of the countries to reduce their imports, which she admitted was “not easy”, stating that “They had to rethink their energy needs at a critical time for the world economy and quickly began to find alternatives to Iranian oil, which many had been reliant on for their energy needs.”

Due to last year’s earthquake and subsequent disaster at Fukushima, Japans energy needs were higher than normal, and yet they still managed to cut their Iranian imports by 22 percent.

The decision means that the countries can still continue to buy Iranian crude, after the sanctions come into effect at the end of June.

Japan’s Finance Minister, Jun Azumi, has said that the government “welcomed the U.S. announcement,” and that they will “keep reducing oil imports at a certain pace.”

Mark Dubowitz, the executive director of the Foundation for Defense of Democracies in Washington, said that yesterday’s decision “begins to reduce some of the uncertainty in oil markets over how the administration will apply oil market sanctions.”

“It gives Japan, in particular, which needs to keep buying Iranian oil, a clear pathway to continue those purchases without putting their financial institutions at risk. It also establishes an early precedent that puts pressure on South Korea, India, China, Turkey, South Africa and other major buyers of Iranian oil to also comply with U.S. law.”

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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