Wednesday, Apr 11, 2012
(Adds comment from Spanish official)
By Benoit Faucon, Ilan Brat and Liam Moloney
OF DOW JONES NEWSWIRES
LONDON (Dow Jones)--Iran has cut oil exports to Spain and is considering taking a similar action against Germany and Italy, Iranian state broadcaster Press TV said Tuesday, citing people familiar with the situation.
The report, which didn't move oil prices, follows news over the weekend that Iran has halted supplies to Greece due to payment issues.
Spain ceased or virtually ceased, importing crude oil from Iran in February, a spokeswoman for the Spanish energy ministry said Tuesday. Recent data point to an increase in Nigerian oil exports to Spain, Spanish statistics show.
Iran will be barred from selling oil to EU countries under an embargo to take effect July 1, but Iranian officials have periodically threatened to cut off European importers before that time. Some of these prior threats have moved oil prices.
Italy, Greece and Spain have been historically Iran's main oil buyers in the EU, with a combined 532,000 barrels a day in the third quarter, according to EU statistics body Eurostat. Germany only bought 8,000 barrels a day of Iranian oil during the period.
A previous report by Press TV in February said that Iran had stopped supplies to six EU countries to preempt the embargo, including Spain and Italy, but was promptly denied by Iranian officials.
Oil prices were lower Tuesday on concerns about lower Chinese oil demand. Light sweet crude for May delivery on the New York Mercantile Exchange was 17 cents lower, at $102.29 a barrel. May ICE Brent crude was 93 cents lower, at $121.74 a barrel.
An Italian government spokesman said the country hasn't been notified of any change in its petroleum supplies.
"We haven't received any official communication from Iran," said an Italian industry ministry spokesman.
German officials and a spokesman for the National Iranian Oil Co. couldn't be reached.
The broader Iran story has given upward support to oil prices because of threats that Iran would close the Strait of Hormuz to oil exports and the risk of an Israeli attack on Iranian sites suspected of contributing to nuclear weapons research.
Iran, which maintains its nuclear program is for peaceful purposes, recently agreed to resume talks in Turkey. The decision to agree to hold the talks in Turkey was seen as conciliatory following prior Iranian efforts to hold the talks in Iraq.
Iranian President Mahmoud Ahmadinejad Tuesday downplayed the effects of recent sanctions on Iran.
"Some people think that they can trouble Iran through oil sanctions but I should say that we have so much reserves that even if we don't sell oil for two to three years, the country will be administered easily," Ahmadinejad said, according to Fars News Agency.
-By Benoit Faucon, Dow Jones Newswires; +44 20 7842 9266; benoit.faucon@dowjones.com
-By Liam Moloney, Dow Jones Newswires; +39 06 6976 6924; liam.moloney@dowjones.com
(Jan Hromadko in Frankfurt and Ilan Brat in Madrid contributed to this report)
(END) Dow Jones Newswires
10-04-12 1851GMT
