Japan and South Korea to buy oil from Iran again – energy expert

Oil&Gas Materials 21 November 2018 14:06 (UTC +04:00)

Tehran, Iran, Nov.21


"South Korea and Japan have reduced their oil purchase from Iran, due to their good relations with the US, but I think they will return to Iran`s market again," Energy expert and ex-director for international affairs at the International Affairs at National Iranian Oil Company (NIOC), Mohsen Ghamsari told Trend.

"Traditional relations between Iran and Japan have always been based on goodwill. But in terms of commercial relations, we did not have a high volume of trade ties, therefore the oil cut did not have much of effect on Iran. On the contrary, it might damage some refineries in Japan,” he said.

“In my opinion, South Korea who has good relations with the US, was forced to cut the oil import from Iran, but is now buying Iran's oil again,” he said. “In recent months, South Korea has bought Iran's oil more than its contracts allowed, and has filled its oil reservoirs. In addition, in case of the import of gas condensate from the two phases of the South Pars, we would not face any difficulties and South Korea itself will face more losses than Iran.”

"Iran can use half of the gas condensate in the newly established Persian Gulf Star Refinery and sell the rest, so cutting Iran gas imports cannot have any effect on Iranian market,” he said.

“There is an anticipation that shows South Korea will return to Iran again.”

“If Iran's oil is cut off from the market, the market will certainly be in short supply, therefore many countries are considering this issue. Of course, the countries like Saudi Arabia would not be able to completely replace Iran's oil, it could be said that reducing Iran's oil exports would have the greatest impact,” he said, referring to reduction of Iranian oil exports after deadline of the granted temporary exemptions.

Earlier this month, the Trump administration re-imposed sanctions on Iran that were in place prior to the Joint Comprehensive Plan of Action (JCPOA)’s implementation in 2016. Fearing a spike in oil prices, however, the administration granted waivers—or as Washington’s chief diplomat Mike Pompeo called them, “temporary” exemptions”—to eight nations: China, Greece, India, Italy, Japan, South Korea, Taiwan, and Turkey.