Tuesday, September 4, 2012

Iran Facing Problems Selling Oil - Ahmadinejad

Iranian President Mahmoud Ahmadinejad said in an interview with the state television that Iran faces problems selling oil.

"There are some problems in selling oil and we are trying to manage it," Ahmadinejad said. (IRIB/AFP, 4 September).

The Iranian president’s remarks contradict a statement on Monday by the Iranian representative to OPEC, Mohammad Ali Khatibi, that oil exports were “almost normal.” (ISNA, 3 September).

OPEC, however, noted in its latest monthly report that Iranian oil production has slumped to its lowest point in more than two decades, to 2.8 million barrels per day.

Ahmadinejad added the collective impact of sanctions on Iran’s economy “is like war.”

“(The sanctions) “are blocking off conduits... like the conduits of selling oil, foreign exchange, our banks and the central bank,” the president said. "We are working to bypass them day and night.”

But, he added, "most of the time when an obstacle is created, it takes a long time to remove it."

Photo Credit: Iranian President Mahmoud Ahmadinejad in an August 2012 file photo. (AFP/Behrouz Mehri)


Mark Pyruz said...

"There are some problems" and "almost normal" are not quite contradictory.

During the NAM summit in Tehran last week a lot of work was performed by the Iranian foreign ministry in efforts to promote oil exports and establish the financial means to circumvent the economic war being directed against it.

Anonymous said...

yup, the Iranian regime sure is having trouble selling oil and is now moving into the phase where the sales become costly for Iran while the prices for the oil has to be discounted well below market price.

..and the Chinese stop investing in development in Iran....and really soon Iran will have to offer China whopping discount in hope of moving all the unsold oil...

Unknown said...

Given the degree of disinformation, when Ahmadinejad say some difficulty, it really means tons of difficulties!

Anonymous said...

@Jabbar Fazeli

Tons and Tons of difficulties!

Anonymous said...

Ahmadinejad's candid admission is not surprising. However, if you think sanctions will force Iran to halt its nuclear program then you're in for a rude awakening!

Nader Uskowi said...


True! But still niether "there are some problem" nor "almost normal" does not convey the sense that the exports have been cut in half! I guess if they say there is a problem, then there might be no oil!

The distinction, hence contradiction, between the two phrases was not of the literal meaning of the two, but the sense they intend to give to the public. When you read the oil minister’s comments, you think no worries, everything is near normal. When you listen to Ahmadinejad, you realize that there is a serious problem. And I think Ahmadinejad was on the message. The senior leadership, after months of insisting that sanctions have not worked, needs to tell the public that there are problems, in the hope that they blame the foreign powers.

I believe the leadership expected the oil sanctions to last only for a short period of time, thinking that the world NEEDS Iran’s oil, and expecting the normal flow to resume within a month or so before the oil prices hit the roof and the West starts to back off. But that did not happen and it’s time to broadcast the problem.

Anonymous said...

I think it's time for the entire leadership to take poison.

Anonymous said...

So far price of oil is high again.... and Russia is making money too.