Japan Will Resume Iran Crude Purchases in Jan.
Japanese refiners will start buying Iranian crude oil in January, but will only continue buying until March to make sure they don’t get on the bad side of Washington in case the 180-day sanction waivers are not extended, S&P Global Platts reports, citing the head of the country’s Petroleum Association.
"We aim to lift as much as possible over January-March to keep our hope for the next period," Takashi Tsukioka said.
Japan is one of Iran’s largest oil importers, but it is also the United States’ staunchest ally in Asia—and the combination of the two has not worked to Tokyo’s advantage.
Even though the sanction waivers were issued last month, Japanese refiners—like their counterparts in South Korea—have steered clear of Iranian crude so far because there was not enough clarity about tanker insurance, S&P Global Platts notes.
Now, they will have three months to stock up on cheap Iranian oil before the waivers expire.
The Trump administration has made it clear the ultimate goal of the sanctions was to bring Iranian oil exports down to zero, which puts a question mark over any extensions.
On the other hand, Japan, like China, India, and South Korea, may find it hard to secure alternative supplies in amounts and for prices that would justify them, hence the three-month buying spree Japanese refiners are preparing to embark on.
S&P Global Platts also quoted a US government official who wished to remain anonymous as saying that all transactions involving the purchase of Iranian crude by the eight countries granted waivers had to be completed before May 5, when the waivers expire.
"If someone takes delivery or pays for Iranian crude oil when they do not have an active SRE (significant reduction extension), that transaction would be sanctionable."
source: Financial Tribune
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Hedge funds slash bullish wagers on gold over Trump election win
Gold loses some luster after Trump’s decisive win
Resolute Mining says it will pay Mali $160 million in tax dispute
Russia takes aim at US nuclear power by throttling uranium
Aluminum price to average 6% higher in 2024 on strong demand: Fitch
BHP to spend up to $14 billion on Chilean copper expansion
Trump chooses oil fracking boss as energy secretary
Marimaca Copper eyes ASX dual listing to boost Chile project
Osisko Development surges on permitting milestone for Cariboo gold project
Earth AI, Legacy Minerals make first greenfield palladium discovery using artificial intelligence
Mexico’s proposed higher mining royalties could block nearly $7bn in investments
Sierra Leone woos miners to clean energy with $11 billion plan
Alrosa plans production cuts and staff reduction for 2025
Chile’s rare salt flat fish face threat from lithium mining project
Endeavour Silver raises $73m for Pitarrilla project
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Marimaca Copper eyes ASX dual listing to boost Chile project
Osisko Development surges on permitting milestone for Cariboo gold project
Earth AI, Legacy Minerals make first greenfield palladium discovery using artificial intelligence
Mexico’s proposed higher mining royalties could block nearly $7bn in investments
Sierra Leone woos miners to clean energy with $11 billion plan
Alrosa plans production cuts and staff reduction for 2025
Chile’s rare salt flat fish face threat from lithium mining project