Monday, February 20, 2012

Iranian Oil Imports

The U.S. delegation led by the U.S. State Department's special adviser for arms control and proliferation Robert Einhorn is pressurizing South Korea to strike down the Iranian oil imports justify Washington's intention to strengthen the noose around Iran's nuclear program. However, Seoul, which is dependent on the U.S. for its security warned that cutting Iranian oil imports lead to an increase in oil prices in the difficulty in finding a replacement for crude supplies.

Washington has made clear that Asian countries should reduce oil imports from Tehran to exert pressure on Arab countries to continue with its nuclear program, who felt the U.S. was producing weapons of mass destruction. The European Union has already agreed to ban imports of Iranian crude oil.

South Korea, which is 10 percent of crude oil supply comes from Iran, will find it difficult to switch to alternative sources of supply. On the other hand, Japanese Finance Minister Jun Azumi statement about the country agreed to reduce the import of Iranian oil was canceled prime Yoshihiko Noda, which it labeled as a personal opinion.

South Korean Foreign Ministry Cho Byung-Jae representative expressed concern over Washington's desire as a reduction in imports of Iranian oil would result in unstable crude oil adversely affect the market and the economy. Iran is a major crude oil buyers are Asian countries like China, Japan and the Indians and the scramble to secure alternative supplies would result in a trip to oil prices.

Tehran regularly come under fire, the UN and unilateral sanctions for years, but President Obama took a step further and signed a law that called for countries to stop paying for Iranian oil.

Iranhas are putting up with the U.S. claiming that its nuclear technology for peaceful means, and has threatened to close the Hormuz strait important if the oil sanctions imposed.

South Korea has a $ 5 billion trapped in the banking system owes Iranian banks, which have difficulty in sending on hold because of U.S. sanctions. Despite U.S. pressure, the South Korean refiners to buy more oil from Iran. However, they are looking for alternative sources if the need arises. The only solution left is Saudi Arabia, which will be able to sufficiently deplete the imports from Iran. South Korea is in talks with Oman and United Arab Emirates to ensure a continuous supply of oil and gas in Seoul.

Meanwhile, Japan has consistently reduce oil imports from Iran in the past five years to bring a drop of almost 40 percent without the impact on the economy.

The author is an experienced writer of petroleum related fields, who often writes articles related to oil prices and indices and crude oil, including advice on investing in oil.

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