ENERGY:: IEA: Oil Market Ready For Iran Loss – WSJ
By MB Snow at February 20, 2012 | 4:09 pm | Print
LONDON—Oil markets, including in the European Union, could cope with any loss of Iranian oil exports, an official with the International Energy Agency said Monday, after an Iranian threat to pre-empt an EU embargo pushed oil prices to a nine-month high.
But the IEA, which represents the views of energy consumers, warned that the standoff between Iran and the West was bringing the burden of oil prices on the global economy to near levels last seen in 2008.
Didier Houssin, IEA director for energy markets and security, said in an interview that “there are alternative supplies that can make up for any loss of Iranian exports,” with more production made available both within and outside the Organization of Petroleum Exporting Countries in the second half.
The remarks came as Ahmed Ghalebani, managing director of the National Iranian Oil Co., warned European companies it would interrupt their supplies if they don’t sign long-term deals, according to the oil ministry’s website Shana.
Iran will sell “oil to European countries in terms of two to five-year contracts and without any preconditions and…otherwise the exports will be canceled,” he warned.
Iran has been ratcheting up pressure on the European Union in recent days as it tries to pre-empt a full EU ban on its oil starting July 1.
On Sunday, Iran’s oil ministry said had it halted exports to the France and the U.K.—though the measure was essentially symbolic as both countries already stopped buying Iranian oil.
But even if Iran heeds to its threat to cut supplies to other buyers, the IEA’s Mr. Houssin said the “impact of such a move will be extremely limited,” as many refineries will soon stop producing due to seasonal maintenance and oil companies have already started replacing Iran oil.
via IEA: Oil Market Ready For Iran Loss – WSJ.com.