Concluded by futures prices for crude oil the U.S. trading week elapsed on the rise for a third day in a row, extending a gain for the second week, and registered the highest close since May 2011 and that by the signs of economic improvement and concerns about oil supply of Iran and hopes that Greece will get in the end a deal rescue of debt next week.
At the end of dealing in the New York Mercantile Exchange, the price of U.S. light crude for March delivery settled at $ 0.93, or 0.91 per cent to 103.24 dollars a barrel, surpassing the closure of the fourth of January to 103.22 dollars and its highest close since the tenth of May 2011.
The oil contracts concluded by the U.S. week high of $ 4.57, or 4.6%. This was the best performance for decades, U.S. crude since the week ending on 23 December when he closed closest maturity contract high of $ 6.15, or 6.58%.
In London, the price of Brent for April delivery settled at 119.58 dollars a barrel, down $ 0.53, or 0.44% after the record high level of $ 120.70 during trading, its highest level since 15 June.
Record oil and a strong performance this week on fears of possible supply interruptions and optimism about Greece. Brent and record weekly gain for the fourth time in a row.Brent was trading at 120.05 dollars a barrel.
Said Jonathan Barratt, Executive Director of the Bulletin of bars, Brent responded with a range of things including the continued optimism about Greece and the weak dollar and market concentration to lower exports from Iran to Europe.
Sources in the oil sector, the biggest buyer of Iranian crude in Europe undervalue their imports a great extent before the start of the application of EU sanctions, which reduced supplies to Europe in March, more than a third.
Purchases from Iran, India
To the Chief Executive Officer of Essar Oil, the second largest buyer Indian oil of Iran, said the company will continue to buy 100 thousand barrels per day of the Islamic Republic during the next fiscal year, which begins in early April, for the refinery Vadinar its affiliates in the state of Gujarat in western India.
Because of the sanctions imposed by the West on Iran, it has become difficult for importers to pay for Iranian oil. Indian buyers are facing problems in payment since December 2010 after a stop mechanism for the settlement of payments.
He told. K. Gupta, CEO of Essar Oil, told reporters after the announcement of quarterly results for the company, «We have an agreement with Iran in force until 31 March 2013.Quantity as it is still almost at the moment ».
Gupta added that the amounts owed by the Essar now against imports of Iranian oil is about $ 1.2 billion.
Gupta said that despite the increase in refining capacity of Essar, it will not increase the supply of Iranian oil and does not see any difficulty if the sanctions adversely affected in Iranian supplies.
He said «so far, although we continue to receive the contracted quantities in the case of an emergency we are given to the base of our suppliers we will be able to purchase the necessary raw Mcefatna».
With the expansion of its refinery company Essar refinery development of the Indian refines very heavy oils and the amount of weight, to improve refining margins.
Said Akihiko Tembo, president of the Federation of oil companies in Japan, the Japanese refineries should be taught to include a paragraph on the oil contracts with exposure to unavoidable circumstances in the oil futures contracts with Iran, in the event of any difficulties in refineries pay for the oil pressure in the face of U.S. sanctions.
The United States wants the angry of Iran’s nuclear program from Japan to reduce its imports of Iranian oil, but Japan must import large quantities of oil in the wake of Fukushima nuclear crisis, but they still have to cut imports significantly.
And seek Japan’s third-largest buyer of Iranian oil, to get an exemption from U.S. sanctions, which if applied would punish some Japanese banks for dealing with Iran’s central bank.
It says refineries awaiting instructions from the Japanese government about the size of any reduction in imports of Iranian oil, and noted that imports from Iran decreased gradually over the past two years.
He told reporters Tempo «is a reduction in imports and the inability of refineries to cut imports is another matter. The company will have to negotiate to be flexibility in the contract ».
He said «If you can not the banks of the settlement of payments, even if the buyer wants to pay it they have to study the development of a paragraph relating to exposure to unavoidable circumstances».
Senior European buyers
The oil sector sources said that senior buyer of Iranian oil in Europe cut their purchases months before the start of the application of EU sanctions, which cut supplies to Europe in March, more than a third or more than 300 thousand barrels per day.
And France’s Total have already stopped buying Iranian crude, facing sanctions from the European Union from July, sources say the market that Shell reduced its purchases sharply.
It is also believed that the Motor Oil Hellas Greek import Iranian oil stopped altogether, while reduced the Greek Hellenic Petroleum, Repsol and Cepsa Alaspaintan imports.
The client is so far one of the largest buyers of Iranian crude from the European Union «strongly reduced purchases because of the political situation. We still buy smaller quantities, but many of them about two months ago ».
For small clients Europeans, especially in Italy things are proceeding as usual.
Said Christophe de Margerie, chief executive of Total, end of last month, the French company stopped buying Iranian crude, but Shell has avoided public comment on its status.
Sources in the sector that the Anglo-Dutch Shell, the biggest buyer of Iranian oil in the world, supplying about 100 thousand barrels per day for Europe and almost the same amount for Asia under an agreement with Japan’s Showa Shell ends in March.
And Cepsa and Repsol declined to comment on their positions.
And compensate the companies that have reduced its imports of Iranian lack of vendors including Saudi Arabia, the largest oil exporter in the world, Iraq and Russia.
The executives said the oil sector, said Saudi Arabia was ready to supply additional amounts of compensation during the current futures or selling in the spot market.
Did not change some small-scale buyers of Iranian oil and principally their Italian companies so far.
Eni of Italy and still receive a single shipment of Iranian crude a month which is much stable for two years. The company expected to continue this after the first July, which will receive oil as payment for work carried out in Iran under the agreements entered into by more than ten years.
A source familiar with «continue our work as usual at this time. We have a lot of debt should be recovered ». Traders said oil, said that Iranian crude is relatively cheap compared to rivals such as raw materials the Russian Urals.
Officials in the sector and the Iranian Oil Ministry gives priority to commercial considerations will vary with calls from some politicians to stop the sale of Iranian crude to the European Union in response to sanctions.
The executive said in Iran’s oil sector «We are in the Oil Ministry are opposed to this from the ground».