Oil prices soar as Iran halts European exports

members’ strategic oil reserves to fight the supply shortage caused by the civil war in Libya.
Press TV, Iran’s English-language television network, reported that Tehran had stopped sales to the Netherlands, France, Spain, Italy, Greece and Portugal.
The report could not be independently verified, but the station broadcasts the regime’s views.
The Iranian announcement appears designed to cause as much economic damage as possible, targeting the economically weaker countries in Europe: Greece, Italy, Portugal and Spain, analysts said.
The announcement comes a month after Iran threatened to pre-empt a European embargo on its oil by halting its exports to the region immediately. The European Union approved a ban on crude oil imports from Iran from July 1, a five-month delay designed to give Greece, Spain and Italy time to find alternative supplies.
The ambassadors of the European nations affected were summoned to Iran’s foreign ministry earlier yesterday. Oil officials in Tehran could not be reached immediately for comment.
Iran is the world’s third-largest oil exporter, only behind Saudi Arabia and Russia.
Riyadh has said in the past that it is ready to fill any gap left in the market by Iran. The IEA has also said it could tap its strategic reserves in case of a disruption.
Rome and Madrid bought the bulk of the Iranian oil that European countries imported from Iran last year, according to estimates by the US Department of Energy. The EU bought on average of 450 000 barrels a day. Italy bought 180 000 b/d while Spain imported 140 000 b/d. Iran accounted for a third of the oil of Greek imports. – http://www.ft.com.