Iran Hits Back at EU with Own Oil Embargo Threat
January 29th, 2012
Via: Reuters:
Fighting sanctions with sanctions in a test of strength with the West over its nuclear ambitions, Iran warned on Friday it may halt oil exports to Europe next week in a move calculated to hurt ailing European economies.
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“They are the masters of bluffing,” one Mediterranean crude oil trader said of remarks by Iranian lawmakers on Friday. “And they aren’t very reliable when they threaten extreme measures,” he said, noting the serious practical difficulties for tankers and storage plants of diverting 700,000 barrels of oil per day.
“That said, we are living in strange and difficult times,” he added, as Brent crude futures gained 0.8 percent to $111.64 on the threat, while disappointing U.S. GDP data pushed prices back.
In Tehran, Hossein Ibrahimi, vice-chairman of parliament’s national security committee, was quoted by the semi-official Fars news agency as saying: “On Sunday, parliament will have to approve a ‘double emergency’ bill calling for a halt in the export of Iranian oil to Europe starting next week.”
Moayed Hosseini-Sadr, a member of the energy committee in the legislature, said there would be no delay of the kind the EU allowed to its members on Monday when it imposed a ban on oil imports from Iran that would take full effect only on July 1.
“If the deputies arrive at the conclusion that the Iranian oil exports to Europe must be halted, parliament will not delay a moment,” Hosseini-Sadr said. “The Europeans will surely be taken by surprise and will understand the power of Iran.”
The Golden Jackass (Jim Willie) writes:
“The Petro-Dollar itself is in danger. The Persian Gulf has a new Protectorate in China. Vast expansion of port facilities and distribution systems using the UAE as a hub for European and African trade have been established. It includes critical structural work required for trade, banking, currency, and gold management. Furthermore, the actual Dollar Kill Switch had to be devised, with confirmed connection to the OPEC oil trade. My source has informed me that the switch is finally in place and ready. It will be pulled when the crisis reaches the next stage. The numerous defiant gestures by China, Iran, Russia, India, and Japan paint the billboard in big bold letters. The workaround of the USDollar is moving fast apace. What we are witnessing is the end of the Petro-Dollar in slow steps, like the recent Saudi-China refinery deal. The crowning blow might have been announced this week, as India will pay for Iranian oil in gold bullion. Gold for oil sounds like a historical point in time.
Backfire extends to Europe, where the absence of Iranian oil supply will cause some extreme problems. A German source with great contacts wrote yesterday, “The Persians are cutting off oil shipments to Europe, effective immediately, which will kill Greece, Italy, and the other Club Med deadbeats. The West with their sanctions led by the Americans screwed itself royally. The Asians and others are dis-engaging from the Western banks as fast as they can. Expect to see more wild fluctuations in the Gold and Silver prices continue. Until this week, the Gold forces did not know how weak the Anglos already are. They have hardly any firepower left.” Difficult decisions will be made. The foreign motive nourished to seek alternatives is at high pitch. The real loser will eventually be the USDollar, whose Petro-Dollar defacto standard is being washed away.”
http://www.kitco.com/ind/willie/jan272012.html
thanks, pookie, very interesting.
Agreed, very interesting. Thanks pookie. Kevin has the right idea to get out the popcorn.