European refineries and trading houses were preparing to stem Iranian crude oil purchases after Washington imposed harsher sanctions on deliveries from Tehran than many expected in the energy industry.
The Trump government has given buyers 180 days to reduce imports after withdrawing from a groundbreaking nuclear deal with world powers. Many of the traders and refineries who have spoken to Bloomberg expect that they will have to curb their purchases, unless the European Union can guarantee exemptions, even though no one has said that they have already taken such measures when we are forced to we would immediately stop all on-going operations and look for alternative supplies, "said Spanish refinery Cia Espanola de Petroleos SAU, an oil trader who had asked not to be identified warned the employees not to consult their legal and financial departments, before they conclude any dealings with Iran, according to Bloomberg's internal memo.
I do not know yet how big the necessary reductions are and whether condensate ̵
Insuring Crude  Earlier sanctions against the Iranian oil industry were lifted less than 2 1/2 years ago. These penalties were imposed by both the EU and the US, while the recent restrictions were unilaterally imposed. While the EU is likely to resist, one major concern is how the new restrictions will affect the banking and insurance industries that are critical to the global sourcing and shipping of crude oil.
The US move is likely to have a significant impact on maritime trade "Iran and the insurance of such trade" said the international group of P & I clubs, whose members include around 90 percent of the world's tankers against risks A clarification from the rest of the signatories on the nuclear deal will be instrumental in helping traders and refineries deal with the consequences, the insurer said.
EU refineries imported 421,000 barrels of Iranian crude last month, while Turkey bought 252,000 barrels per day According to cargo tracking company Kpler, Italy was the largest customer with 245,000 barrels per day among the EU countries.