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Anti-Iran Sanctions Prompt Oil Jousting

By: Daniel Pereira
Posted: 4/23/2012 8:48:00 AM
Referenced Stocks:

Iran's oil customers have begun significant jousting and re-positioning to avoid trouble caused by the U.S. sanctions levied against the Middle Eastern nation. Iran's commerce partners are preparing for the restrictions applied in the middle of the year, Reuters reports .

Turkey is searching for alternate purveyors, India is keeping additional options in mind and smaller nations in Asia believe their small imports from the oil-rich nation are so small they hardly merit financial penalty. Under western and United Nations scrutiny for its nuclear ambitions, the oil-rich Middle Eastern nation is set to conduct its second international diplomatic meeting next month in Baghdad. Irani officials met U.N. security council members earlier this month in Istanbul.

"The bottom line is that there are alternative suppliers. We are not buying at a subsidized price. We are buying at an international price," Turkish Finance Minister Mehmet Simsek told reporters during last week's Group of 20 finance ministers meetings in Washington. "We obviously comply with United Nations sanctions. With U.S. sanctions, of course now we are looking at basically options out there in terms of oil. It's premature but something is being worked out."

But Russian, Chinese, additional Asian nations and some Indian firms are capitalizing on the vacuum being created, FARS News Agency reports .

A four-day International oil and gas show in Tehran last week revealed an aggressive presence of Asian and East European firms while western interests were only represented by outfits from Norway and Austria.