There were many deal struck on this one.
I wonder what Americas part in this one was.
Oil is up to $90 / barrel, so I wonder if this had something to do with it.
OPEC has no reason to call an emergency meeting even as oil climbs above $90 a barrel because the market is well-balanced and doesn’t need further supply, Iran’s OPEC governor said.
“Oil at $90 is not an extraordinary situation,” Mohammad Ali Khatibi said by phone from Tehran today. “There are some temporary supply issues, but stocks are high and there is no permanent shortage in supply.”
Does the above sound suspicious to you?
Another way to look at it is, that it’s politics as usual?
On a side note:
Supplies will start Feb. 1 under the five-year contract, and the export volumes may be increased in the future, said Rovnag Abdullayev, the head of State Oil Co. of Azerbaijan, or Socar, in comments broadcast on state television from the signing ceremony in Azerbaijan’s capital of Baku.
Iran to sell crude to India on credit this month
|Press Trust Of India / New Delhi January 13, 2011, 1:18 IST|
Only a stop-gap arrangement, say officials.
Weeks after the Reserve Bank of India (RBI) clamped on the main conduit used by Indian companies to pay for Iranian oil, the Gulf country has agreed to sell on credit this month.
Till early last week, there were no problems in supplies as the payment mechanism had been decided prior to RBI closing the Asian Clearing Union route, a move that effectively stops settlements in the dollar and the euro.
“Pending resolution of the gridlock, Iran has agreed to sell crude oil on credit this month,” a senior official said.
The nation’s largest importer of Iranian crude, Mangalore Refinery and Petrochemicals Ltd (MRPL), along with Indian Oil Corp (IOC) and Hindustan Petroleum Corp Ltd (HPCL), will get some six million barrels of crude on 60-90 days credit.
“This is a stop-gap arrangement. This cannot last long and a permanent solution has to be found,” the official said.
India has asked Iran to identify a panel of banks, which were not under US sanctions, to route payments to National Iranian Oil Co (NIOC).
State Bank of India, the nation’s largest lender, is ready to facilitate payments but is not willing to deal with any bank on the US sanctions list.
The two nations have so far not been able to find a solution as to how New Delhi should pay for Iranian oil imports after RBI said payments to Iran could no longer be settled using a long-standing clearing house system run by regional central banks.
An Indian delegation would visit Teheran on January 14 to explore payments in yen, euro and dirham.
The official said SBI had refused to route payments through Hamburg-based EIH Bank, which Iran had last week identified as a temporary channel for routing money to NIOC.
NIOC has an account with the bank but SBI felt as the bank was already under US sanctions, its business in America might get affected from dealing with EIH.
“Some nine banks, mostly in UAE, have been identified. Details will be discussed at the January 14 meeting in Tehran,” he said.
Iran is India’s second-largest supplier of crude oil after Saudi Arabia. India imports $12 billion of crude annually from Iran — about 14 per cent of its total crude import bill. MRPL buys 7.1 million tonnes of Iranian oil while IOC and HPCL import three million tonnes each. Private sector Essar Oil imports about five million tonnes.
Iran, India pay dispute escalates
Tehran refused to sell oil to India under New Delhi’s prohibitive new rules
- Published: 00:00 December 31, 2010
New Delhi: A payments dispute between India and Iran escalated after Tehran refused to sell oil to India under New Delhi’s prohibitive new rules, sources on both sides said on Wednesday.
The Indian sources said officials from the central banks of the two countries were to meet today as Iran seeks to rescue trade worth around $12 billion (Dh44.1 billion) a year, at risk from rising US pressure for countries to abandon all trade dealings with Iran.
Last week, the Reserve Bank of India said deals with Iran must be settled outside the Asian Clearing Union (ACU) system, used by central banks of member nations to settle bilateral trades.
Analysts predicted talks would be tough and that New Delhi may face a costly bill if it abandoned Iranian oil imports.
Iran is under global pressure due to its nuclear programme, and although United Nations sanctions do not forbid the purchase of Iranian oil, the United States has pressed hard for governments and companies to stop dealing with Tehran.
India is the biggest buyer of Iranian crude among ACU members, with state-owned refiners and privately owned Essar Oil taking around 400,000 barrels per day.
Two Indian industry sources said on Wednesday that National Iranian Oil Co (NIOC) had turned down Indian oil firms’ request for payments outside the ACU. The ACU includes the central banks of India, Bangladesh, Maldives, Myanmar, Iran, Pakistan, Bhutan, Nepal and Sri Lanka.
“Indian firms had asked Iran to immediately nominate a bank in Europe through which payment can be made. But NIOC refused,” said one of the sources.
When asked if NIOC was willing to accept any mechanism outside the ACU, a NIOC source said: “It is not acceptable to NIOC as this exercise… (has been) in place for so many years”.
Iran’s central bank requested a meeting with its Indian counterpart, a Reserve Bank of India (RBI) spokesperson said, adding no date had been set.
But an oil industry source said the talks would be today in Mumbai.
He said India’s oil ministry has suggested that RBI stick to the old mechanism of guaranteed payments for oil for now.
Ambika Sharma, deputy secretary general at the Federation of Indian Chambers of Commerce and Industry, said: “The two central banks could look at settling the trade transaction in a currency other than the euro and the US dollar”.
Indian analysts said the oil dispute was the result of US pressure to stop dealing with Tehran to force it to abandon its nuclear programme.
The White House on Wednesday praised the Reserve Bank of India for reducing its dealings with Iran’s central bank.
“We think the Reserve Bank of India has made the right decision to carefully scrutinise and reduce its financial dealings with the Central Bank of Iran,” White House spokesman Tommy Vietor said. “This latest action adds to the growing list of companies, financial institutions and governments that are increasingly concerned about Iran’s misuse of trade and financial relationships to support illicit activity, including its nuclear programme.”
Tehran has said it pursues only peaceful goals and is not trying to build a nuclear bomb.
US President Barack Obama visited India last month and promised to help New Delhi boost its global role.
“Iran is already struggling to place their crude in the market, and any stoppage of supply to India will further escalate the problem specially when series of sanctions are imposed on them,” said Praveen Kumar, who heads consultancy FACTS Global Energy’s South Asia oil and gas team.
New Delhi seeks solution
India expects a solution to its dispute with Iran over payments for oil in the next few days, its oil secretary said yesterday, which would rescue trade worth $12 billion (Dh44.1 billion) a year to the sanctions-hit Islamic Republic.
India’s central bank has said deals with Iran must be settled outside the long-standing Asian Clearing Union system and Iran has refused to sell oil under the new rules. “We are working on an alternate settlement mechanism. It is being discussed at length with the ministry of finance and a solution will be found in the course of the next few days,” Indian Oil Secretary S. Sundareshan said. “The Asian Clearing Union mechanism … is under some stress and RBI wants to make changes in this mechanism,” he added.