Article

2012-01-13 Syria-Lebanon-Iran

Iran's 'distressed' oil to keep flowing - at deep discount

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Posted by gorb 2012-01-13 02:19|| || Front Page|| [11124 views ] Top

#1 "This isn't about Beijing trying to be a good actor. The Chinese are trying to get a better price on what is now a distressed asset."

LOL. So true, so true.

Posted by gromky 2012-01-13 03:03|| 2012-01-13 03:03|| Front Page Top

#2 ...I am trying to remember the exact numbers, but supposedly Iranian oil would be in the black all the way down to about $25/bbl. Think about it for just a second - if the Iranians start selling oil hand-over-fist at a huge discount, the rest of OPEC is going to have to follow...

Mike

Posted by Mike Kozlowski 2012-01-13 08:54|| 2012-01-13 08:54|| Front Page Top

#3 Iran still has to import a large % of refined oil and petroleum products at the current high prices. That trade deficit will continue to grow and with their weakening Rial v the dollar, the screws are tightening

Posted by Frank G 2012-01-13 11:07|| 2012-01-13 11:07|| Front Page Top

#4 if the Iranians start selling oil hand-over-fist at a huge discount, the rest of OPEC is going to have to follow... How much oil can be pulled 'out of the ground' is limited. When their exports max out, no further effect on world prices will be noticed.

Posted by Anguper Hupomosing9418 2012-01-13 11:18|| 2012-01-13 11:18|| Front Page Top

#5 Then again, I hear that supplies are expected to tighten up when the strike starts in Nigeria sometime Sunday.

Posted by Thing From Snowy Mountain 2012-01-13 12:14|| 2012-01-13 12:14|| Front Page Top

#6 This is all complete nonsense. As long as Iran can physically export oil they won't loose anything.

The number of barrels sold doesn't go down because of that. If Europe or Japan doesn't buy Iranian oil they will buy from someone else. Since production is not going up this is just a bookkeeping issue.

The Chinese may still get a small discount to keep them happy but certainly not 15%.

Posted by European Conservative 2012-01-13 16:30|| 2012-01-13 16:30|| Front Page Top

#7 I have to agree. Oil is a fungible commodity. As soon as it leaves Iran, it ceases to be Iranian.

What does affect Iran is if it gets into a war with Israel, the US or both. At that point, oil does not leave Iran. Nor can they continue to refine it for long, and none of their neighbors will dare export refined petroleum to Iran.

A blockade of the Gulf works both ways. It means no Chinese ships, either. And pipelines are very vulnerable.

Posted by Anonymoose 2012-01-13 16:43|| 2012-01-13 16:43|| Front Page Top

#8 Distressed Oil?

Have they considered counseling to make it feel better?

Posted by CrazyFool 2012-01-13 17:35|| 2012-01-13 17:35|| Front Page Top

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