Informed sources are saying an official embargo against the Iranian regime’s oil by the European Union will be definite by year’s end. The Iranian regime has claimed it will find buyers for its 19% of oil exports in Asian countries.
The large buyers of Iranian regime’s oil in Asia, consisting of China, India, South Korea and Japan have already begun serious negotiations with other crude oil exporters, especially Saudi Arabia. These countries are concerned of the consequences of embargoes against the mullahs’ oil exports and central bank. Sanctions against the Iranian regime’s central bank will make financial transactions very difficult.
China, the largest consumer of the Iranian regime’s crude oil, is more worried than any other country. In addition to political reasons, China is also worried of the probability of oil price increases. Of course, before this Saudi Arabia has guaranteed China it is willing to provide enough oil and maintain market stability in case of oil embargoes against the Iranian regime.
If the mullahs are not able to find purchasers for its oil, it will be forced to provide it with discounts or even through credit payments without credible guarantees. The Iranian regime’s ability to store oil without buyers is limited. Last year, nearly 30 million barrels of heavy oil, especially productions from Iran’sNorouz and Soroush oil fields, were afloat at sea in rented oil tankers.
The Iranian regime’s hopes in Russia will be useless because Moscow announced through its Minister of Energy last week:
“Moscow will remain impartial on Iran oil embargoes.”
Moscow announcing its impartiality and its lack of opposition with oil sanctions against the Iranian regime is actually an approval to the US to impose such measures. Russia is thinking of its own interests. If the price of oil exports increase, the price of Russia’s gas exports to Europe will also increase. Furthermore, Russia alongside Saudi Arabia is considered one of the two largest crude oil exporters in the world, welcoming an increase in oil exports and prices.