Iran oil

Iran postpones implementing oil export ban on EU

Commodity Online,

9 February, 2012

After days of strong statements suggesting that Iran would immediately stop all oil exports to the EU in response to the EU ban, the parliament of Iran failed to convert the idea into a bill.

On Wednesday, Iran's lawmakers failed to present the bill intended to stop oil exports to the EU. Instead they agreed on unspecified retaliatory measures and replacing the EU market with new customers.

This will ensure that the EU will possibly have access to Iran's oil till the implementation of the ban, starting July 01, 2012. The EU is also looking for alternative supply sources, the primary being Saudi Arabia who have been vocal on its commitment to ensure steady supply of oil to the global economy.

Analysts feel that with the loss of the EU market, Iran will have to look to the power hungry Asia, especially China, who in their turn could push for oil discounts.