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Thread: OPEC: Sanctions Taking Toll on Iran

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    OPEC: Sanctions Taking Toll on Iran

    "Iranian oil production, the backbone of the Islamic republic’s economy, fell by 12 percent in the first three months of the year and is likely to fall even more, industry experts say, as sanctions make it increasingly hard for the country to find markets for its crude. The decline, documented in a May report by the Organization of the Petroleum Exporting Countries, is sharply at odds with statistics provided by Iran’s Oil Ministry that register no significant change in output over the past year. But it is accelerating so fast that if current trends continue, Iran could lose its position as the second-largest crude oil producer in OPEC to Iraq by June 2013, the organization’s statistics show.

    At a rate of more than 3 million barrels a day, Iran is still the second-largest producer of crude oil in OPEC after Saudi Arabia. But its production levels have been in gradual decline for years, hampered by sanctions that have starved the industry of spare parts and new investment. Its more immediate problem now is a lack of buyers, after new sanctions on financial institutions and pressures by the Obama administration on reliable customers like India, China and the Southeast Asian nations.

    “We are not selling as much as before, and the use of outdated equipment is taking its toll,” said Reza Zandi, an oil specialist writing for Shargh, a newspaper that is critical of the government. “Clearly this is not serving Iran’s interest.” Iran’s oil minister, Rostam Ghasemi, on Tuesday denied both reports by OPEC and the International Energy Agency. “The reports are not true at all, and our oil is selling very well,” the semiofficial Fars news agency quoted him as saying.

    Iran also faces a boycott of its oil by the European Union, which is scheduled to start on July 1. This will be accompanied by a ban on insurance for Iranian oil shipments, a measure that has already had an impact by deterring insurers from issuing policies that might extend beyond July 1.

    “We are even seeing less and less Chinese and Indian companies calling our port,” said one an oil cargo inspector, who spoke on the condition of anonymity to avoid potential repercussions. He said his company’s final European customer arrived at the port for oil in the beginning of April. “We are waiting to see what will happen when those new sanctions kick in.” Already, financial sanctions devised by the United States Treasury Department are making it increasingly difficult for customers of Iranian oil to pay for the crude, with reportedly both China and India offering unfavorable barter deals calculated in local currencies.

    “Our economy is like a car with four flat tires,” said Mohammad Reza Sabzalipour, the president of the Tehran World Trade Center. “We can’t bypass these sanctions forever. We need understanding and détente with the West.”

    http://www.nytimes.com/2012/05/18/wo..._r=1&ref=world

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    Re: OPEC: Sanctions Taking Toll on Iran

    I doubt we can sanction their oil to an extent that will cripple them, if china or anyone else NEEDS iran oil they'll buy it... Weve had sanctions on iran for years and they are still up and running their oil and their mouths

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    Re: OPEC: Sanctions Taking Toll on Iran

    This is a good article.. very accurate.

    Quote Originally Posted by Connery View Post
    "Iranian oil production, the backbone of the Islamic republic’s economy, fell by 12 percent in the first three months of the year and is likely to fall even more, industry experts say, as sanctions make it increasingly hard for the country to find markets for its crude. The decline, documented in a May report by the Organization of the Petroleum Exporting Countries, is sharply at odds with statistics provided by Iran’s Oil Ministry that register no significant change in output over the past year.

    But it is accelerating so fast that if current trends continue, Iran could lose its position as the second-largest crude oil producer in OPEC to Iraq by June 2013, the organization’s statistics show.

    At a rate of more than 3 million barrels a day, Iran is still the second-largest producer of crude oil in OPEC after Saudi Arabia. But its production levels have been in gradual decline for years, hampered by sanctions that have starved the industry of spare parts and new investment. Its more immediate problem now is a lack of buyers, after new sanctions on financial institutions and pressures by the Obama administration on reliable customers like India, China and the Southeast Asian nations.

    “We are not selling as much as before, and the use of outdated equipment is taking its toll,” said Reza Zandi, an oil specialist writing for Shargh, a newspaper that is critical of the government. “Clearly this is not serving Iran’s interest.” Iran’s oil minister, Rostam Ghasemi, on Tuesday denied both reports by OPEC and the International Energy Agency. “The reports are not true at all, and our oil is selling very well,” the semiofficial Fars news agency quoted him as saying.

    Iran also faces a boycott of its oil by the European Union, which is scheduled to start on July 1. This will be accompanied by a ban on insurance for Iranian oil shipments, a measure that has already had an impact by deterring insurers from issuing policies that might extend beyond July 1.

    “We are even seeing less and less Chinese and Indian companies calling our port,” said one an oil cargo inspector, who spoke on the condition of anonymity to avoid potential repercussions. He said his company’s final European customer arrived at the port for oil in the beginning of April. “We are waiting to see what will happen when those new sanctions kick in.” Already, financial sanctions devised by the United States Treasury Department are making it increasingly difficult for customers of Iranian oil to pay for the crude, with reportedly both China and India offering unfavorable barter deals calculated in local currencies.

    “Our economy is like a car with four flat tires,” said Mohammad Reza Sabzalipour, the president of the Tehran World Trade Center. “We can’t bypass these sanctions forever. We need understanding and détente with the West.”

    http://www.nytimes.com/2012/05/18/wo..._r=1&ref=world

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    Re: OPEC: Sanctions Taking Toll on Iran

    Quote Originally Posted by lpast View Post
    I doubt we can sanction their oil to an extent that will cripple them, if china or anyone else NEEDS iran oil they'll buy it... Weve had sanctions on iran for years and they are still up and running their oil and their mouths
    The problem is that if you can't repair and update equipment, you risk ruining existing reserves. Iran's production has declined since 1979.. Just like Libya's declined by half after Khadafi's coup in 1969.

    Iran has no refinery capacity to speak of.. They buy refined oil from VZ... and they have had gas rationing for several years. If memory serves.. since 2007.

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    Re: OPEC: Sanctions Taking Toll on Iran

    Quote Originally Posted by lpast View Post
    I doubt we can sanction their oil to an extent that will cripple them, if china or anyone else NEEDS iran oil they'll buy it... Weve had sanctions on iran for years and they are still up and running their oil and their mouths
    Perhaps not cripple them, but, that is not the goal. The aim is to thwart any trade with Iran, to apply pressure. Battles are fought on many fronts and this is one is on the economic front rather than an armed confrontation. The oil is one aspect, it is all trade with these people. Moreover, "Oil supply, meanwhile, is looking increasingly ample. Saudi Arabia, the world's largest oil exporter, has increased production to 10 million barrels a day in recent months. And oil inventories in the U.S. continue to swell, rising 10% over the last 10 weeks amid weak demand for crude. (see Crude Sinks 3.9% to $98.49 a Barrel - WSJ.com )

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    Re: OPEC: Sanctions Taking Toll on Iran

    Oh man I'm such an isolationist. This **** creeps the hell out of me.

    What strategic geniuses the globalists are

    - Make enemies with the world's 2nd largest religion
    - Make enemies with the world's largest oil reserve countries
    - Arm and train future Islamic enemies.
    - Constantly antagonize the world's largest tank and artillery armed army (Russia)
    - Industrialize the world's most populist Communist country (China), with the world's largest army, that wants a lost province back (Taiwan) by giving them American industrial capacity.
    - Weaken US industrial capacity so when war breaks out we will no longer be the "Arsenal of Democracy", in fact transfer the "Arsenal of Democracy" to China and rename it the "Arsenal of Communism".
    - Get a good chunk of the US active duty forces caught in a landlocked country surrounded by former Russian SSR republics, Iran, Pakistan, and China (see bullet points 1,2,3,4,5)

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