By Hilton Price
Iran’s refusal to sell oil to the United Kingdom and France may have backfired, as the Middle Eastern nation is now reportedly struggling to unload the excess production.
The Financial Times is reporting Iran is trying to sell neatly 23% of its annual exports to Chinese and Indian refineries. If a deal isn’t struck by mid-March, the country will be forced to employ floating storage tankers or reduce it’s own production levels. Both options would be reflected by higher prices for oil.
The sales struggle comes from Iran’s attempt to pre-empt an EU embargo of its oil by cutting sales to companies owned by France and Britain. That embargo was spurred by Iran’s advancement of its nuclear program. It was supposed to begin July 1st, to give countries like Greece and Spain enough time to find new suppliers. However, the International Energy Agency says most UK and French buyers had already curbed or cut Iranian imports. The Agency says some Asian buyers, not including China, are also planning to reduce Iran oil imports.
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