Iran threatens to cut oil exports to more EU nations

Iran, OPEC's second-biggest exporter after Saudi Arabia, pumps 3.5 million bpd, of which it exports 2.5 million bpd

Iran will cut oil exports to more EU nations if they remain "hostile," the deputy oil minister who heads Iran's state oil company said Monday Feb 20,2012, a day after sales were halted to France and Britain.Exports to Spain, Greece, Italy, Portugal, Germany and the Netherlands would be stopped, Ahmad Qalebani said, quoted by Mehr news agency.

The action was in apparent retaliation for an EU-wide ban on Iranian oil that is to come fully into effect July 1 as part of Western sanctions against Tehran's nuclear programme.

Oil prices hit nine-month highs today following the move against France and Britain, with London and New York contracts reaching USD 121.15 and USD 105.21 a barrel in Asian trading hours -- the highest levels since May 5, 2011. 




Iran exports about 20 per cent of its crude -- some 600,000 barrels per day (bpd) -- to the European Union, most of which goes to Italy, Spain and Greece.


According to the International Energy Agency, Italy sourced 13 per cent of its oil, or 185,000 barrels per day, from Iran, while Spain imported 12 per cent of its oil needs, or 161,000 bpd, and Greece bought 30 per cent of its needs, or 103,000 bpd.