Tuesday, July 10, 2012

Squeezing Iran

Reuters reports:
Tough Western sanctions are forcing Iran to take drastic action and shut off wells at its vast oilfields, reducing production to levels last seen more than two decades ago and costing Tehran billions in lost revenues. 
Iran struggled to sell its oil in the run-up to the European Union ban on July 1, yet it managed to sustain oilfield flows at lofty rates above 3 million barrels per day (bpd) by stashing unwanted barrels in tanks on land and on ships in the Gulf. 
But oil sales have now slumped to half the rate of last year and storage is running out.
The U.S. is attempting to goad Iran into closing the Strait of Hormuz. The strait becomes of no value to Iran if they can't sell their oil, and yet oil tankers from other countries sail past the shores of Iran, on their way to delivering oil across the goal. It has to be pretty irritating to Iran.

1 comment:

  1. CORRECTION: "...oil across the --goal-- gulf"