Italian Refiner to Increase Libyan Imports Amid Declining Prices

Italian refiner Saras said today that it will replace Iranian crude that accounts for 10 percent of its throughputs with Libyan crude by 1 July, the deadline on EU oil embargo on Iran [argusmedia.com, 28 February].

The company said the rapid return of Libyan paraffinic crude exports to the market after last year's civil war had an immediate positive effect on its refining operations.

Meanwhile, the commodity broker Compass Global Markets said today that the markets have overestimated the potential of Western military action against Iran, and as a result oil prices will continue its decline of recent days.

“We've got a $15 premium built in (to the current price) because of this fear of an escalation in the Middle East, and that premium is going to unwind. The premium is excessive and we'll see oil fall below a hundred dollars in the next month or two,” said Compass CEO Andrew Su [CNBC.com, 28 February].

A Separation Wins the Oscar

A Separation, the universally acclaimed Iranian film written and directed by Asghar Farhadi and starring Leila Hatami and Peyman Moaadi, received the Academy Award for Best Foreign Language Film. A Separation becomes the first Iranian film to win an Oscar.

A Separation has also received the Golden Bear for Best Film and the Silver Bears for Best Actress and Best Actor at Berlin Film Festival as well as the Golden Globe for Best Foreign Language Film.

Runna – Iran New Sedan

Iran’s largest automaker Iran Khodro (IKCO) announced today the launch of its new sedan Runna for domestic and regional markets. IKCO plans to produce 50,000 Runna sedans in 2012. The car will go on sale in April. IKCO, founded in 1962, is the oldest and biggest automaker in the country.

Photo: Runna. IKCO Promotional Photo

Russia Opposes Nuclear Weapons for Iran – Putin

Russian leader Vladimir Putin said today that Russia opposes Iran developing nuclear-weapons capability.

“We’re not interested in Iran becoming a nuclear power,” Putin said. “It would lead to greater risks to international stability.” [Bloomberg, 26 February].

Putin’s statement followed recent Kremlin declarations on the subject. On 15 February, Deputy Foreign Minister Sergei Ryabkov said the progess made by Iran’s nuclear program is “more alarming for Russia than for many other countries.” [Bloomberg].

Iran Stops Shipment of Oil to Greece – Fars News Agency

UPDATE: Iran Denies Blocking Oil Shipment to Greece

UPDATE II: Fars Insists Iran Refrained from Delivering Oil to Greeks

Iran has refused to give Greece a shipment of 500,000 barrels of crude oil in a retaliatory measure against the planned EU embargo of Iranian oil, the semi-official Fars News Agency reported today.

“Oil tankers that had come to transfer 500,000 barrels of Iranian oil to a refinery in Greece had to go back empty-handed after Iran refused to give the shipment.” [Fars News Agency, 26 February].

But Hellenic Petroleum, the Greek refiner and importer of Iranian oil, said in a statement released after the publication of Fars report that Iran has not refused any crude shipment to the company and supplies have been processed “normally.” [Reuters, 26 February].

Iran’s Oil Ministry has not yet confirmed the report. Last week, Fars News Agency published a report on Iran’s immediate ban of oil exports to Greece, only to be refuted by the oil ministry. Iran, however, stopped selling crude to British and French companies.

Reuters reported on Friday that Swiss-based Totsa, the trading arm of French oil major Total, and trading houses Glencore and Mercuria were in separate negotiations with Hellenic Petroleum to help it replace Iranian crude. Hellenic would pay back the traders with refined products, which could then be sold in Greece or abroad.

UPDATE: The Iranian oil officials said Sunday Iran had not blocked an oil shipment to Greece, denying an earlier report by the country’s semi-official Fars News Agency that it had done so in retaliation to the planned EU oil embargo against the country.

“There has been no change in Iran's oil shipment to Greece or any other country. No changes in our shipment schedule,” said Pirouz Mousavi, managing director of the Iranian Oil Terminals Co. [ISNA, 26 February].

UPDATE II: In the newest twist on the report of Iran’s refusal, or lack of, to supply 500,000 barrels of crude to Greece’s Hellenic Petroleum, Iran’s semi-official Fars News Agency in a new dispatch insisted that Iran indeed refrained from supplying oil to the Greeks.

Fars reports that most of Iran’s oil deliveries to European refiners take place outside Iranian ports, reportedly from an Iranian tanker to a European one, and on Sunday when the Hellenic tanker arrived at the point of delivery, Iran refused and the tanker was sent back empty.

Earlier, a spokesman for Iran’s oil ministry had refuted Fars’s report, saying that the deliveries to European companies were proceeding “normally.” Fars now asserts that the oil ministry’s statement was misleading and it was meant only for deliveries at Iranian ports.