Iran plays hardball with European oil buyers, slowing exports

[Lodestar]

Source: Reuters

Iran has managed to sell only modest volumes of oil to Europe since the lifting of sanctions seven weeks ago and several former buyers are staying away, citing legal complications and Tehran's reluctance to sweeten terms to win back customers.

Tehran had been unable to sell crude to European firms since 2012 when the EU imposed sanctions over its nuclear program, depriving it of a market that accounted for over a third of its exports and leaving it relying completely on Asian buyers.

Since the restrictions were lifted in January, Iran has sold four tankers - 4 million barrels - to Europe, including to France's Total, Spain's Cepsa and Russia's Litasco, according to Iranian officials and ship-tracking data.

That equates to only around five days' worth of sales at the levels of pre-2012, when European buyers were purchasing as much as 800,000 barrels per day (bpd) from the country.

Read more: http://www.reuters.com/article/us-iran-oil-exports-idUSKCN0WB0LL

[erlewyne]

1. Sounds like Iran was not intimidated by sanctions?

Maybe Iran is expected to give the oil away?

[Hotler]

2. I would bet that there is more to this story than meets th eye.

Sanctions may have been lifted, but are still in place under the table. The U.S. may be leaning on others to not buy from Iran.