Toothless sanctions? Iranian oil trade booming, China top buyer

[beijingwalker]

Toothless sanctions? Iranian oil trade booming, China top buyer

Published: 31 January, 2013, 13:20

(Reuters)

Iran has quickly found ways to circumvent the EU sanctions imposed on its oil trade in July. After dipping sharply in summer of 2012, Iranian crude oil exports rose again by the end of the year.

*So far, Iran’s December crude oil sales were the highest recorded since the sanctions were first imposed. Iran exported 1.4 million barrels per day (bpd) in December, compared to less than 900,000 bpd in September. Pre-sanctions oil exports stood at 2.2 million bpd in late 2011.

EU sanctions, introduced in January 2012 and put into effect in July, aimed to curb Iran's ambitious nuclear program, which Tehran has insisted is only for peaceful purposes. The Iranian economy is heavily dependent on oil sales – the cuts in production lead to billions of dollars in lost revenue and a plunge in the value of the national currency.

Analysts believe that sales to Asia and the expansion of Iran’s tanker helped the Islamic Republic circumvent the sanctions. In countries like China, India and Japan, Iranian oil constitutes more than 10 percent of the total crude supply – and demand from Asia is only growing.

"China is saying let's up the numbers because no-one is doing anything about it and it looks like Obama has made a political decision not to go to war with Iran," a senior source at a large independent trading house told Reuters.

Iran is also improving its delivery channels, despite the numerous bans and restrictions imposed by the international community.

"Iran bought a number of tankers from China and can now do more deliveries. It's taken some pressure off Iran and facilitated tanker traffic and we are seeing higher exports to China," analyst Salar Moradi at oil and gas consulting firm FGE told Reuters.

Meanwhile, a fresh round of US sanctions looms for Iran. Starting on February 6, US law will prevent the Islamic republic from repatriating earnings from its oil export trade. The ban is in addition to the already-existing restrictions, including the country's removal from the SWIFT global financial service and an indefinite international asset freeze.

The new sanctions are expected to reduce export volumes to around 1 million barrels per day, the International Energy Agency predicted. However, analysts believe that further sanctions will not stop Iran from selling oil or pursuing its nuclear goals.

"What we have seen is that when Iran is pushed to a do or die situation, they have looked for creative solutions to get around sanctions," oil and gas analyst Elena McGovern of Business Monitor International told Reuters. "The system will always find a way to cope."

The international community has been failing to engage in constructive dialogue with Iran on its nuclear program. The so-called ‘sixtet’ of ‘5+1’ states – Britain, China, France, Russia, the US and Germany – met three times last year with little to no results. The next round of talks has been stalled until a venue for the meeting is agreed upon.

"Some of our partners in the six powers and the Iranian side cannot come to an agreement about where to meet, behaving like little children," Russian Foreign Minister Sergey Lavrov said. He stressed that Russian mediators “are willing to meet at any location.”

While the West has demanded that Iran abandon its nuclear aspirations, Iran refuses to back down: Tehran has seized every opportunity to advance its nuclear capabilities. On Thursday, Iranian officials informed the UN nuclear agency of its plan to use more modern centrifuges at the Natanz uranium enrichment plant.

 

[Malik Usman]

Even today Pakistani cabinet allowed to go ahead with gas pipeline with Iran, despite of US pressure....Cabinet said we will not take any pressure on this issue that is in our national interest.....Uncle same is loosing his allies due to his attitude.

 

[gambit]

Hopefully this should put to rest the silly argument that US sanction is the cause of North Korea's poverty and famine. So if China can defy US sanction on Iran, any country can defy US sanction on North Korea.

 

[shuttler]

Hopefully this should put to rest the silly argument that US sanction is the cause of North Korea's poverty and famine. So if China can defy US sanction on Iran, any country can defy US sanction on North Korea.

Untrue.

US sanction on ROK is more severe than on Iran.
Iran has more neighbours and bi lateral trades with a lot more countries than N Korea (partly due to the presence of a stronger ROK)
Iran is oil rich, DPRK is not. Iran is more developed, a bigger economy than N Korea
N Korea suffers longer sanctions than Iran

 

[gambit]

Untrue.

US sanction on ROK is more severe than on Iran.
Iran has more neighbours and bi lateral trades with a lot more countries than N Korea (partly due to the presence of a stronger ROK)
Iran is oil rich, DPRK is not. Iran is more developed, a bigger economy than N Korea
N Korea suffers longer sanctions than Iran

That is very true. You cannot credibly challenge the principle: That American laws are not applicable to China, Great Britain, Russia, France, etc. Any of these country can trade and aid North Korea. Dare you tell everyone that the American sanction on Viet Nam is less severe than North Korea? Can you explain how is it that US allies Japan, South Korea, and Canada defied US and entered Viet Nam long before US President Bill Clinton lifted the US sanction? I have yet to see a credible explanation of how.

 

[FaujHistorian]

Untrue.

US sanction on ROK is more severe than on Iran.
Iran has more neighbours and bi lateral trades with a lot more countries than N Korea (partly due to the presence of a stronger ROK)
Iran is oil rich, DPRK is not. Iran is more developed, a bigger economy than N Korea
N Korea suffers longer sanctions than Iran

China is the smartest nation on earth right now, all thanks to its hard working, smart, humble, and intelligent people.

China provides the best of the world manufacturing services to the West (and pretty much the rest of the world),

This has allowed Chinese gov to accumulate every item of international wealth that you can imagine.

Therefore China can use its huge cash reserves, its strong currency, and gold to buy raw material from anyone in the world.

Iran being under sanctions is selling its God given wealth aka raw petroleum to China at throw away prices.


I suspect (based on the knowledge of such international deals) Iranians are selling the oil for at least $20 to $30 per barrel discount when you consider the whole supply chain from Iran to China and payment chain from China to Iran.

Not just China but anyone buying oil from Iran with gold or cash is in fact enjoying HUGE discounts.

Pakistan with its puny aka totally hollow cash reserves also wants to get in this game, but it cannot. so what does it do? It tells Iran, you give us natural gas at a discount and we'll pay you with wheat grain.

And Iranians are saying. Chupri hui or woh be do do? Na bhai.

We (Iranians) need cold hard cash or gold. Oh you Bakistanis (like NFP says) Be like Chinese or Indians. We the Iranians rather not deal with beggars who can't pay cash for the stuff they want to buy.

So

Who is the winner in the China-Iran oil deals? Chinese, Gulf Emirs, and every company involved in the sanction busting schemes.


Who is the loser or shall I say "biggest loser" in this game. Iranian people who are losing huge $$$$ for being forced to discount their natural wealth.


I hope this makes it clearer for you all now that why such deals are made in the first place.
And why NK remains beggar while Iran limps on.



peace.


p.s It is not my intention to hurt anyone's feeling. Just doing an un-emotional aka cool headed analysis and presenting here a summary of international trade.

 

[Serpentine]

Iran being under sanctions is selling its God given wealth aka raw petroleum to China at throw away prices.


I suspect (based on the knowledge of such international deals) Iranians are selling the oil for at least $20 to $30 per barrel discount when you consider the whole supply chain from Iran to China and payment chain from China to Iran.

20$ a barrel? Are you kidding me?
Not true.Both oil minister of Iran and Energy minister of China denied that Iran is giving any discounts on oil.

China simply buys Iran oil because it's different than Saudi and other Arab oils.Iran has light crude oil, while the one on Saudis is heavy crude and the refineries are being built according to oil type they process.That's why Europe gave 6 month time to its members to stop oil imports from Iran, to change and modify their refineries.

Iran is exporting 1 millions barrels a day now, which according to price you gave, 20$ for a barrel, equals $600 millions in a month that is ridiculous.
You have no proof that Iran is giving discounts to its oil.The way China is benefiting is that Iran has to receive some of the money by buying Chinese commodity.

 

[FaujHistorian]

20$ a barrel? Are you kidding me?
Not true.Both oil minister of Iran and Energy minister of China denied that Iran is giving any discounts on oil.

China simply buys Iran oil because it's different than Saudi and other Arab oils.Iran has light crude oil, while the one on Saudis is heavy crude and the refineries are being built according to oil type they process.That's why Europe gave 6 month time to its members to stop oil imports from Iran, to change and modify their refineries.

Iran is exporting 1 millions barrels a day now, which according to price you gave, 20$ for a barrel, equals $600 millions in a month that is ridiculous.
You have no proof that Iran is giving discounts to its oil.The way China is benefiting is that Iran has to receive some of the money by buying Chinese commodity.

My dear dear poster,

Please read again. I was saying $20 discount. (that means $80 per barrel if the international price is $100).

And not

$20 per barrel.


Hope you get this now.

By the way I am being nice here. Typical "black market" discount is close to 50% for anything you want to buy or sell.

That means the final amount that goes into Iranian government vault is around $50+ per barrel.

As I said earlier, these are estimates based on typical black market deals. Perhaps Iran is lucky and giving 0% discount. But then we all will be deluding ourselves.


Peace

 

[Serpentine]

My dear dear poster,

Please read again. I was saying $20 discount. (that means $80 per barrel if the international price is $100).

And not

$20 per barrel.


Hope you get this now.


Peace

Sorry, that was my mistake.

But yet, even $20 discount doesn't make sense.It's too much and I explained it already.

 

[FaujHistorian]

Sorry, that was my mistake.

But yet, even $20 discount doesn't make sense.It's too much and I explained it already.

No problem. some times I make similar mistake to not read in the full context.


$20-$30 discount is what sources in UAE say is the going rate.

However if you have better sources then you can mention/list them.

If you don't know about such deals, then please do not be emotional.

Iranian government is keeping its citizens in the dark on these black market deals.

It pains to see that Iran is paying 50% premium on anything it buys from overseas (parts of plants, military etc) and then turns around and loses 50% on stuff it sells.


Off course this has brought millions in the coffers of all those Sheikhs sitting in UAE.


They would love Iranians to continue doing self-destruction aka suicide


And so many socialists and Islamists on this forum and elsewhere will continue saying, yes Iran go, go go go, we are with you, we will stand by you when you commit suicide.


peace

 

[iajj]

20$ a barrel? Are you kidding me?
Not true.Both oil minister of Iran and Energy minister of China denied that Iran is giving any discounts on oil.

China simply buys Iran oil because it's different than Saudi and other Arab oils.Iran has light crude oil, while the one on Saudis is heavy crude and the refineries are being built according to oil type they process.That's why Europe gave 6 month time to its members to stop oil imports from Iran, to change and modify their refineries.

Iran is exporting 1 millions barrels a day now, which according to price you gave, 20$ for a barrel, equals $600 millions in a month that is ridiculous.
You have no proof that Iran is giving discounts to its oil.The way China is benefiting is that Iran has to receive some of the money by buying Chinese commodity.

yes, china buys iran's oils for two vital strategic objectives: to reduce our energy dependency on US dependencies like all the zionist monarchies in the gulf, and to reduce our dependency on US dollars in our international trade.

these are the overriding, political interests china sees in its oil import from iran. and of course china wants the best commercial deal as well and drives the hardest bargain possible, but then this is fair and true of all business deals between all countries, surely true between chinese and north koreans and pakistanis and - for that matter - between jews and anglosaxons as well. but no party involved is stupid enough to gravely shortchange and wrong another party in a mere commercial deal to imperil the political interests invested in the trade by both sides.

 

[FaujHistorian]

yes, china buys iran's oils for two vital strategic objectives: to reduce our energy dependency on US dependencies like all the zionist monarchies in the gulf, and to reduce our dependency on US dollars.....

These two issues you mention are the issues for Iran.

China has no problem making defense deals with Israel
China already earns trillions of dollars doing trade with USA.


Hope you see that Chinese are pragmatic and practical in their international dealings and good business is their top prriority.

Unlilke Iranian Ayatullahs, who are totally emotional and their religion holds two things at the highest level. Even higher than god.

Those two things are:

-- Marg ber Amreeka (death to America)
-- Marg ber Israel (death to Israel).

These two issues are Iranian 110%.


On another note, if you don't know by now, Iranians are using UAE based companies to make most of the black market deals, the same UAE that you call " zionist monarchies in the gulf". Just FYI. Nothing to pick a fight about.


peace

p.s. Looks like you have false flags. I have never met a Chinese who talks like you do. But I have met many Iranians and Pakistani Shias who talk like you do.

 

[Wright]

These two issues you mention are the issues for Iran....

p.s. Looks like you have false flags. I have never met a Chinese who talks like you do. But I have met many Iranians and Pakistani Shias who talk like you do.

I never understood why a Chinese would have such a deep hatred for Jews.

 

[ChineseTiger1986]

I never understood why a Chinese would have such a deep hatred for Jews.

lol, the history speaks the truth.

Shanghai Ghetto - Wikipedia, the free encyclopedia

 

[iajj]

These two issues you mention are the issues for Iran.

China has no problem making defense deals with Israel
China already earns trillions of dollars doing trade with USA.


Hope you see that Chinese are pragmatic and practical in their international dealings and good business is their top prriority.

Unlilke Iranian Ayatullahs, who are totally emotional and their religion holds two things at the highest level. Even higher than god.

Those two things are:

-- Marg ber Amreeka (death to America)
-- Marg ber Israel (death to Israel).

These two issues are Iranian 110%.


On another note, if you don't know by now, Iranians are using UAE based companies to make most of the black market deals, the same UAE that you call " zionist monarchies in the gulf". Just FYI. Nothing to pick a fight about.


peace

p.s. Looks like you have false flags. I have never met a Chinese who talks like you do. But I have met many Iranians and Pakistani Shias who talk like you do.

haha, my sole brush with islam in my entire life was that i was made to read koran once in college, and when i ran into a passage lifted out of the book in my midterm but was given the option not to answer that question, i chose not to because i understood not a word of the complicated prose (and still don't). on the other hand, i am sure you are a misnomer because you are a lousy historian and not intellectually honest like me.

the war against rootless races is one imposed on all eurasian peoples, and i believe even yindoos and viets and bonzi can be made to see that one day. but clearly the duty is heavier on russians and chinese than on persians, although at the moment at the edge of the geographic cleft iranians suffered most and had most reasons to hate anglosaxons, jews and turkics. but if the chinese opposition to the rootless races can be less emotional than iranian struggle against these creatures, it is no less fatalistic.

of course we are a business people. but we never let pure economic dealings get in the way of forging strategic relationships: if we were, we would have sold out northern bonzi to southern bonzi and joined yindoos in exploring afghanistan. but, like david hume said, the most eminently commercial races tended to be the most political because savages cannot even understand what is a supreme political moment and what constitutes vital political interests. chinese are not sanguinary people like a lot of inferior, turkic races throughout history, but we are far more political and whenever necessary, we cut off trade ties with the turkics in order to methodically prosecute wars against these things. it is the same with us when it comes to jews and anglosaxons.

and one may add that pakistan embraced several such supreme political comments ever since the birth of the nation and most of the pakistanis grasp that essence of politics perfectly well. for those few pakistanis who often sing to a different tune, like a certain @Mercenary who sold out his soul to arab monarchists and zionists, a certain quarter pakistani by the name of @liontk whose biology confuses his intelligence and his politics, coconut men like @VCheng, or any other individuals with false pretensions to training in political or historical thought (darn, there are some "think tankers" on pdf who are silly at best and feign ignorance and stupidity at worst), i say i hold even yindoos and viets and bonzi with higher regard than i do your lot.