(Adds details, quotes)
* Iran to ship at most 1.1 mln bpd in July, half of 2011 avg
* Japan, S.Korea halt Iran imports this month
* Iran forced to store more crude
SINGAPORE/TOKYO, July 5 (Reuters) – Iran will see its July
oil exports more than halved from regular levels seen last year
because tough new Western sanctions are stifling flows and
costing Tehran more than $3 billion in lost revenue per month.
Declining oil exports, the lifeblood of the Iranian economy,
will increase Tehran’s struggle to contain spiralling inflation
and mounting unemployment amid its standoff with the West over
its nuclear programme.
“They will eventually have to close down production. Right
now it seems very unlikely that they will get any relief from
sanctions any time soon,” said an executive with a Western oil
firm with a long history of dealing with Iran.
Exports in July will be a maximum of 1.1 million barrels per
day (bpd), said an industry source familiar with Iran’s monthly
shipping plans and who declined to be named due to the
sensitivity of the matter.
Iranian exports have declined steadily from the 2.2 million
bpd average in 2011, as its oil buyers cut imports to comply
with U.S. and European Union sanctions imposed due to concerns
the country is attempting to build a nuclear bomb.
Continued…
