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TEHRAN, Iran -- Iran has halted oil shipments to Britain and France, the Oil Ministry said Sunday, in an apparent pre-emptive blow against the European Union after the bloc imposed sanctions on Iran's crucial fuel exports.
The EU imposed tough sanctions against Iran last month, which included a freeze of the country's central bank assets and an oil embargo set to begin in July. Iran's Oil Minister Rostam Qassemi had warned earlier this month that Tehran could cut off oil exports to "hostile" European nations. The 27-nation EU accounts for about 18 percent of Iran's oil exports.
According to the BBC, Qassemi reaffirmed his stance, claiming the suspension posed no problems for Iran.
Targeting Britain and France appeared to be a political decision by Iran to punish the two countries for supporting tougher sanctions against Iran over its disputed nuclear program.
"Crude oil exports to British and French companies have been halted," Oil Ministry spokesman Ali Reza Nikzad-Rahbar said on the ministry's website. "We have our own customers and have no problem to sell and export our crude oil to new customers."
Britain's Foreign Office declined comment, and there was no immediate response from French officials.
The European Commission said last week that the bloc would not be short of oil if Iran stopped crude exports, as they have enough in stock to meet their needs for around 120 days.
Iran continues to flex its military muscle but appears willing to resume talks with world powers. NBC's Ali Arouzi reports.
Industry sources told Reuters on Feb. 16 that Iran's top oil buyers in Europe were making substantial cuts in supply months in advance of European Union sanctions, reducing flows to the continent in March by more than a third - or over 300,000 barrels daily.
France's Total has already stopped buying Iran's crude, which is subject to fresh EU embargoes. Market sources said Royal Dutch Shell has scaled back sharply.
Greece, Turkey and Saudi Arabia
Among European nations, debt-ridden Greece is most exposed to Iranian oil disruption.
Motor Oil Hellas of Greece was thought to have cut out Iranian crude altogether and compatriot Hellenic Petroleum along with Spain's Cepsa and Repsol were curbing imports from Iran.
Iran was supplying more than 700,000 barrels per day (bpd) to the EU plus Turkey in 2011, industry sources said.
By the start of this year imports had sunk to about 650,000 bpd as some customers cut back in anticipation of an EU ban.
Saudi Arabia says it is prepared to supply extra oil either by topping up existing term contracts or by making rare spot market sales. Iran has criticized Riyadh for the offer.
Iran said the cut will have no impact on its crude sales, warning that any sanctions on its oil will raise international crude prices.
The Associated Press and Reuters contributed to this report.
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Domingo, where are you getting that number? I call BS on you, there is no way US consumption has decreased 47%!!
buy a corvette. the late models are cool and save gas.
Here Now The News ....
I have had the pleasure and the pain of reading and contributing to this blogosphere for a couple years now. On that count I must admit that I have been entertained, informed, insulted, pained and pleasured by the incredible number of questions, answers, viewpoints, opinions, attacks and good old American humor at it's best. Regardless of our personal differences, I think everyone deserves a thanks for simply being in the game and to be engaged enough to toss their two cents in where they feel impassioned to do so. No one can be completely right or completely wrong on any given issue, and I think that is the beauty of sharing constructive discourse in a public venue like this. Keep up the good work everyone. Thanks and have a great day.
Peace to all
Sounds like France & England could use the Keystone Pipeline from their former colony Candida more than we can
I smell blood.
Saudis pick up the oil slack, tensions will grow. Iran may consider it an act of war to undercut them
And then there is the impending Israeli strike
The Saudi's are one of the most repressive and fanatic religious societies around.They even make Iran look good on that point.They are a Wahhabi Sunni group,the most fundamentalist of all Sunni fanatics.They hate the Iranians because they are Shia. A minority in the Muslim world that has been oppressed and murdered by the Sunni for centuries.The Saudis would do anything to continue their oppression of the Shia,who to them are heretic's.Our involvement with the Saudis is going to lead in the long run (and no one knows how long that will be) to a disaster for us.
But Obama bows to them. They have to be good Moose lims
China has Iran's back and Russia has Assad's
The west reminds me of the bully on a school playground,trying to steal the other kids lunch money (sanctions and threats of bombing).When someone actually stands up to them (Iran retaliating by cutting of oil sales to them,and saying if attacked they'll fight).They start whining about the guy standing up to them.What douchebags we've become these last years.
Hey Israel sorry about that! The Saudis just gotta have a nuke too to counter Iran. NOW you have 2 countries to take out soon!
maybe its time to wake Obama up and get his attention back on the oil pipeline from Canada and tell all these so called environmentalist to shut their pie hole. America is in enough financial trouble now and a oil shortage is the last thing we need.
It is not the environmentalist causing the problem and stopping the pipeline, it is the oil investors who are putting up up a front to stop the pipeline because if there is not a perceived shortage they can't control to price of oil and make a profit on their investments.
Could it be that Obama is making some profit from stopping the pipeline ???????
Sounds like France & England could use the Keystone Pipeline from their former colony Candida more than we can
Oil consumption here is down & will continue according to the Wall Street Journal & Exxon
http://online.wsj.com/article/SB123957686061311925.html
So you are saying greed is good is actually behind the stall and not tree huggers?? Must be true, not many trees to hug on the Great Plains, just wind farms
Is Exxon & the Wall Street Jorunal "Tree Huggers"?
Iran is the fifth largest oil producer. Gas is around $6.00 a gallon in the UK right now. When the speculators get this news and gas in the US goes to $5.00 a gallon you'll see just how relevant Iran's oil is.
Saudi Oil for N.Korean nukes sounds almost like a given. BOTH have what the other side needs, a win win situation! Or maybe we can just lease them some nukes assuming Israel won't mind
There's a hole in the bucket, dear liza......no worries Iranians. we do a sanction, then buy more f**kn apple Ipads from China who will suck more trade surplus, then do more oil business with you. Enjoy more, Iranians!
all of this is a direct result of israel influecing & dictating the politics america plays against countries that pose no threat. if anyone is to look at global insecurity its the us, invasion of vietnam, areal drone assissination in no less than 5 countries, invasion of iraq in '03 and another invasion of afghanistan to find a hand full of people. Bases all over the world, we've got missiles systems installed everywhere..Don't forget we actually used nukes on another country. I mean do you ever stop to wonder why America has so many enemies out there that put our own soldiers lives at unnecessary risk and deaths? now more threats against a country using words like 'every option is on the table' and you expect us to believe that iran is all of a sudden the bad guy? comeon man lol... the list goes on and on.. these politicians are wreckless and take an anger management classes or something
It is not so easy to shift customers quickly and if Iran has done it then it is costing them something. China and India aren't stupid, they will take all the advantage they can to receive discounts. Any reduction Iran sees in payments is going to hurt the regime.
Another solution to the Iran problem nobody thinks of for obvious reasons;
If Israel & the US helped Iran Attack Turkey,,, We would be BFF, sounds silly & it won't happen, but it's true
I usually dont get caught up in the commenting as to not add to the deliberate division of humanity through the big media tool, but no comment here addresses the fact that Israel, and the other controlled allied governments have been pushing for the Iran conflict for decades, and they know the populous is so short sighted, and easily distracted with the never ending proccession of fabricated so called headlines, that it seems they will be able to start another bogus conflict, killing another million or so innocent civilians, depleating the resources of the country, lining the pockets of the private contracting companies, and all the while we go deeper into the abyss back at home, economically, and lose the last of our personal liberties. Or we can all find a co mmon ground , unite, and say no more. Stop enabling the machine, soilders refuse to fight... Awaken
Geopolitics of the region is highly complicated, hardly what people assume. Iran has a constant war with Turkey, any country who allies against Turkey can be their BFF including Israel
For us Nesviners, to say we understand regional threats & politics is like one of us saying we understand global economics
We need higher oil and gas prices now if we are ever going to get serious about alternative energy. As painful as it sounds it is the only thing that will spur serious investment and resources into developing these alternative fuels. By drilling you only prolong the $3-5 gas and development will take forever with alternatives. Put American's backs against the wall and you will see how fast these alternative fuels become affordable!
Yeah, Tell that to the elderly couple I visit three times a week who live in two rooms, heat on fuel oil, drive an old car to get to Dr's, church and grocery. Their meds costs near $600.00 A MONTH, heat has been low this year around $300.00 month and they eat macaroni and tuna most days.
Yes we need green energy but you do not put a nation in cold turkey over night and act like survival of the fittest is the norm.
Much worse things have happened throughout history. This would affect them for less than a year and then they wouldn't have to eat macaroni and tuna on most days. Old, young, and disabled alike would all have to sacrifice for the greater good. Unless they like being dependent on oil I don't see why the would oppose it. Instant gratification hurts everyone!
Find me a green vehicle that will go uphill in low 4 wheel drive around a mountain ridge covered in gravel and I'll drive it out there to them myself.
DUNCE.
You signed your post with dunce. That explains why you don't understand my reasoning. If you get serious investment in alt energy (and that will only happen when price of gas is too much) then you will get your green 4X that moves mountains
"It is not so easy to shift customers quickly and if Iran has done it then it is costing them something. China and India aren't stupid, they will take all the advantage they can to receive discounts. Any reduction Iran sees in payments is going to hurt the regime."
That's true,having to make discounts in the short run will hurt.But being able to keep your economy going is worth it.
The whole world should immediately stop buying Iran oil. It's way past time to completely stop such a radical country.
The whole world needs to stop buying anything from CHINA or RUSSIA and let them know that we will NOT support nations that support IRAN.
It will never happen as Americans have no spine to STAND on principle since the majority has NONE.
"Shock & Oops" again? ---- Not likely,, conservatives bet the farm on that one. It didn't work out so hot for the USA or the region
Too many perfectly good American kids in uniform didn't come back alive & too many have had their lives seriously altered --- It hurt a hell of a lot of FAMILIES & is still hurting them
You REALLY think China, who gets a lot of oil from Iran, is gonna buy into that? Iran makes a great proxy by which to shove the West out of their sphere of influence just like n Korea does. We go away. n. Korean problem does too!
No leroy2112, religion is!
Why does this matter? It was already decided that they will soon stop buying Oil from Iran. The only difference that Iran acted first, but that does not matter because it was already planned. It's like if I'm going to be fired from my job, but decide to quit before I'm fired. Did I win anything? No, because I was already going to be fired anyways. The Iran government is just doing that to make themselves feel good about acting first. That by doing that, they have somewhat "Won."
OR it could be they are just calling a BLUFF by acting first. We shall soon see
Iran fiddles around with oil exports.
West panics, prices shoot up.
Iran's friends get break on oil supply and cost.
West panics, prices shoot up.
Iran thumbs nose at West.
West goes into state of confusion; oil price shoots up.
Iran knows how to negotiate with West, especially Barack Neville Chamberlain Obama.
Oil prices shoot up.
V.I.,,, I'm not panicking & haven't noticed anyone on this page that is...
The GOP is stirring the "Fear Pot" though ---- Electioneering politics as expected
Lower the demand for oil and lower the price of oil.
Demand in the US is already low. With 19% real unemployment and the government making sure none of them miss an afternoon snack let alone a meal. A growling stomach gets one off their azz and looking for a job and right now many are home getting their 99.
To be continued.....
Let's see if we can come up with an analogy to help us understand that.
1. Cut cost of your food by eating less each meal, save money and food
2. Cut to two meal a day, save more money and food
3. Cut back to one meal a day, save more money and food
4. Stop eating, save all the food and money
OR
Cut automobile production costs by closing one assembly plant
Cut even more by closing another assembly plant
Completely eliminate production costs: close all assembly plants
Saudis take up Europe's slack, China buys more Iranian oil. I call that a wash. But fear and speculation will drive oil prices up anyway. I say $110 for WTC by friday, $125 for BRENT