Iran oil exports get insurance sanction relief

Iran says its nuclear deal with the United States and the European Union has made it easier and cheaper to trade oil due to an easement of insurance restrictions for purchasing countries. According to Reuters, the deal between Iran and six other countries offers partial relief from a shipping insurance ban that has forced some counties to reduce or avoid imports from the Middle Eastern nation.

Although the deal does not put an end to US or EU sanctions, it does allow existing Iran crude oil customers to increase or resume shipments altered or reduced in light of the insurance ban.

“…Iran's crude oil exports will not decline and our customers will be able to purchase oil from Iran without any anxiety and they will not have to look for alternatives,” said Ali Majedi, deputy minister for international affairs and trading, discussing the effects of the deal.

Initially, the Iran deal led to a drop in oil prices, but that loss was regained in early trading later. Investors initially buoyed by the news later admitted the deal would see no immediate increases in oil supplies.

The deal, as it stands, is set for a six-month duration, at which time the details will be reviewed.

 

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...