Baku, Azerbaijan, Oct. 21
By Elnur Baghishov - Trend:
Europe can meet its needs if it buys 700,000-1.5 million barrels of oil from Iran daily, said Akbar Torki, a member of Velaie faction of the Iranian Parliament, Trend reports citing the parliament’s website.
Torki added that the price for each barrel of oil is currently estimated at $60-$70, adding that each barrel reaches Europe with an average final price of $110.
“There are issues regarding the provision of tankers, insurance and transport security,” the MP said. That’s why Europe buys oil at these high prices, the MP noted.
Torki added that with the withdrawal of the US from the Joint Comprehensive Plan of Action (JCPOA), the European side put forward a financial mechanism for maintaining trade with Iran called “the Instrument in Support of Trade Exchanges” (INSTEX).
“Because of the US sanctions, the demand for Iranian oil is felt in the world market,” the MP said.
In January 2016, JCPOA was concluded between Iran and the P5+1 group (the US, Russia, China, UK, France and Germany) in connection with Iran's nuclear program.
In May 2018, the US announced its withdrawal from the deal and imposed sanctions against Iran in November of the same year.
In order to preserve the agreements reached as part of the JCPOA, the European signatories of the deal stated formation of INSTEX in January 2019. However, due to different reasons, this financial mechanism hasn’t started operating.