Iran warns of rising oil prices after Europe bans imports
Source: Agencies |
January 30, 2012, Monday
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Oil prices could rise as high as US$150 a barrel because of a European Union ban on imports of Iranian crude, the official IRNA news agency yesterday quoted iran's deputy oil minister as saying.
"Although a precise prediction cannot be made on oil prices, it seems we will witness a US$120 to US$150 oil price per barrel in future," Ahmad Qalebani said.
Benchmark Brent crude prices rose to around US$111.50 a barrel last Friday on expectations Iran's parliament would vote to halt exports to the European Union in retaliation for EU plans to stop all Iranian crude imports by July.
Escalating tensions between Iran and Western allies over Tehran's nuclear program, including Iranian threats to close the vital Straits of Hormuz, have helped push up Brent crude prices by about US$8 a barrel since mid December.
But analysts say the world is likely to have more oil this summer thanks to additional output from Saudi Arabia, Iraq and Libya that will more than make up for any lost from Iran after the EU's ban is imposed on July 1 - and this is likely to be reflected in oil prices.
The EU banned imports of oil from Iran last Monday and imposed a number of other economic sanctions, joining the United States in a new round of measures aimed at hindering Tehran's nuclear development program.
Qalebani also warned foreign oil companies to either renew their long-term contracts with Tehran or face the consequences of losing their benefits from the OPEC's second largest producer.
Under buyback contracts, a common feature of the Iranian oil industry, investments in oil field projects are paid back in oil, often over many years.
Iran's parliament postponed a vote on a bill requiring the government to immediately halt crude oil sales to Europe, an Iranian lawmaker said yesterday.
Ali Adiani Rad was quoted by the semiofficial ISNA news agency as saying experts' views were needed before they vote.
Many Iranian officials have called for an immediate ban on oil exports to the European bloc before the EU's ban goes into full effect in July.
"Although a precise prediction cannot be made on oil prices, it seems we will witness a US$120 to US$150 oil price per barrel in future," Ahmad Qalebani said.
Benchmark Brent crude prices rose to around US$111.50 a barrel last Friday on expectations Iran's parliament would vote to halt exports to the European Union in retaliation for EU plans to stop all Iranian crude imports by July.
Escalating tensions between Iran and Western allies over Tehran's nuclear program, including Iranian threats to close the vital Straits of Hormuz, have helped push up Brent crude prices by about US$8 a barrel since mid December.
But analysts say the world is likely to have more oil this summer thanks to additional output from Saudi Arabia, Iraq and Libya that will more than make up for any lost from Iran after the EU's ban is imposed on July 1 - and this is likely to be reflected in oil prices.
The EU banned imports of oil from Iran last Monday and imposed a number of other economic sanctions, joining the United States in a new round of measures aimed at hindering Tehran's nuclear development program.
Qalebani also warned foreign oil companies to either renew their long-term contracts with Tehran or face the consequences of losing their benefits from the OPEC's second largest producer.
Under buyback contracts, a common feature of the Iranian oil industry, investments in oil field projects are paid back in oil, often over many years.
Iran's parliament postponed a vote on a bill requiring the government to immediately halt crude oil sales to Europe, an Iranian lawmaker said yesterday.
Ali Adiani Rad was quoted by the semiofficial ISNA news agency as saying experts' views were needed before they vote.
Many Iranian officials have called for an immediate ban on oil exports to the European bloc before the EU's ban goes into full effect in July.
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