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Iran to Stop Oil Exports to Some EU Countries, Minister
Iranian Minister of Petroleum said Iran will certainly cut its oil supply to a number of European countries, and added that the country will decide over cutting crude supply to other European countries in near future.
"Even if we couldn't sell our crude oil, we will never step down from our stances," Rostam Ghasemi stressed.
Speaking to a press conference on Saturday, 4 February, the Minister noted that the Organization for Petroleum Exporting Countries (OPEC) has always been an economic organization away from political challenges, and added that Iran's relations with other members has always been "satisfactory".
Referring to Iraq's presidency over OPEC for this year, Ghasemi said Iran has also urged the Iraqi Oil Minister to request other OPEC members to respect each other's rights in oil deals.
"Oil market is an international business and has a balanced policy... We do not suppose that other OPEC members would want to disobey each other's rights, and we hope Saudi Arabia would also respect these rights," Ghasemi said.
Referring to long-term pressures western governments had always been keeping on Iran, Ghasemi said "After all these years of pressure, we hope western governments seek for more balance instead, because we will never step down from our stances".
"European governments accepted US request for banning Iran's oil, but we hope that they reconsider the matter because they will be losers," the Minister said.
Answering a question about cutting crude supply to indebted European refiners, Ghasemi said "European refiners do not have a lot of debt to Iran... We have also announced time and again that those countries which would want to cut their imports from Iran in the next six months can do it right now... We have no problem for replacing their market".
"Oil Supply Cut for Some European States Is Certain"
The Minister further stressed that there is no disagreement between Iran's Majlis and the government for cutting oil supply to the European countries, and said "Last week, we announced that we will cut our oil supply to some certain European customers, and we will definitely do that. We will announce the time for this cut accordingly".
He also noted that some European countries have long term contracts for getting Iran's oil for the fields they have developed, and said "We have no problem to cut our supply to them if they want".
Regarding Iran's threat to close the Strait of Hormuz or checking the oil tankers, Ghasemi said "We are not looking for creating tension in the region; as the Strait of Hormuz is a political issue, while we are dealing with economic affairs in the Petroleum Ministry".
He added that Iran sells 18% of its total oil exports to Europe, and said the country already has other customers for crude of more than this amount. Iran has thus promised to supply the crude these customers need for the next six months due to lack of sufficient oil, he added, stressing that Iran has no stored crude at sea or in tanks.
Stressing again on cutting oil supply to certain European countries and deciding over other states in the future, Ghasemi said "OPEC does not have any compulsory articles of association... but its articles of association is in advice-based form, suggesting that members should work to preserve each others' rights, and we have also requested them to protect our rights as well, and we hope Saudi Arabia would also pay attention to this matter".
"No Discount for Iran's Oil Price"
Iran's Petroleum Minister went on to say that applying comprehension sanction on Iran's oil is not practical as it will have a significant effect on global market, adding "It will not be so important for us if European refiners refuse to buy our crude oil, and this is not something we worry about".
He added that the Petroleum Ministry has also prepared plans in this regard, and has held negotiations with its allies in the world.
Ghasemi further noted that Iran has not considered any discount for the price of the oil it exports, and sells its crude at the international oil price.
"We even have some barter contracts with many countries, but we have completely received our oil payments from our customers and we have also paid the price of their commodities as well. Even if we wish to have a good-for-good barter, it wouldn't be that difficult," Ghasemi said.
Regarding the price of oil in case sanctions are applied on Iran's oil, Ghasemi said no exact price can be predicted for oil in that condition, but "the oil price will certainly have a significant growth," he said.
Ghasemi noted that Iran's oil deals with China is being cleared in Euro and Dollars, adding that switching to other currencies will not result in any problem for the country. "We have a lot of economic deals with South Korea, China, and India, which are all bilateral, and I do not think that political issues affect these economic ties," he said.
"Iran Will Never Step Down from Its Stances"
Ghasemi said Iran will never step down from its stances "even if we couldn't sell any of our crude oil".
The Minister said Iran's crude exports to the UK and France is of little amount, and added "Iran does not intend to put European people under pressure in the cold winter weather by cutting their supplies... but we will try to put those countries with more hostile stances toward us under pressure". – Fars
