Friday

29th Mar 2024

EU points to oil reserves after Iran threat

  • Petrol pumps - even in Greece - will not dry up over night if Iran makes good on its threat (Photo: Antonio)

The European Commission has noted that "there is a lot of oil around" inside reserves in EU countries even if Iran makes good on threats to stop deliveries next week.

Iranian MPs are due to discuss on Sunday (29 January) whether to immediately stop shipping an estimated 600,000 barrels of crude oil a day to member states in reaction to recent EU sanctions.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

The Union on Monday said it would stop buying Iranian oil in July unless it falls in with UN demands on its nuclear programme.

Greece - which last year bought some 35 percent of its oil from Iran - is in the most delicate situation because the financial crisis has made other suppliers wary of giving it credit.

The Greek foreign ministry is keeping quiet on the Iranian threat.

But Athens in recent weeks exacted promises from fellow EU countries they would stick by its side in the event of a disruption before it gave its nod to the anti-Iran sanctions.

Greece itself has around 31 million barrels in its rainy-day stock according to the latest figures of the Paris-based International Energy Agency (IEA) - enough to meet over 90 days of consumption without importing or producing a single drop.

Germany has 283 million barrels, enough for over 100 days of consumption. France, which pushed Greece to adopt the anti-Iran sanctions in the first place, is sitting on 160 million barrels, also enough for 90 days.

European Commission spokeswoman Marlene Holzner told EUobserver on Friday: "If you take all the reserves of all the member states together, it means there is a lot of oil around and if they decide to put it into the market, they can do it."

She added: "Yes, it [an immediate Iranian stoppage] would have an impact, but it's not the case that from one day to another one of our members would have no oil at all."

For her part, EU foreign relations spokeswoman Maja Kocjancic said consultations between member states to make sure disruption scenarios do not leave anybody high and dry "have been going on for quite some time."

Oil markets on Friday stayed calm, with prices going up less than $1 per barrel.

The market reaction was similar to Monday's, when prices went up by just over $1 after Iran repeated threats to block the Strait of Hormuz, a maritime conduit for Saudi oil exports.

Western analysts do not believe Iran would risk a military confrontation with the US, which keeps two aircraft carriers nearby.

EU sanctions on Iran peppered with exemptions

New sanctions on Iran could prove hard to enforce after EU countries peppered them with derogations to help Greece find alternate suppliers and to give Tehran-based embassies access to cash.

Iran stops oil sale to France and UK

Iran stopped oil exports to the UK and France on Sunday in what is seen as a pre-emptive move ahead of the EU’s sanctions against the regime.

Agenda

This WEEK in the European Union

Greek debt and - potentially - a new Russia gas crisis will dominate EU affairs in the coming week.

Opinion

Why UK-EU defence and security deal may be difficult

Rather than assuming a pro-European Labour government in London will automatically open doors in Brussels, the Labour party needs to consider what it may be able to offer to incentivise EU leaders to factor the UK into their defence thinking.

Latest News

  1. Kenyan traders react angrily to proposed EU clothes ban
  2. Lawyer suing Frontex takes aim at 'antagonistic' judges
  3. Orban's Fidesz faces low-polling jitters ahead of EU election
  4. German bank freezes account of Jewish peace group
  5. EU Modernisation Fund: an open door for fossil gas in Romania
  6. 'Swiftly dial back' interest rates, ECB told
  7. Moscow's terror attack, security and Gaza
  8. Why UK-EU defence and security deal may be difficult

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Join EUobserver

EU news that matters

Join us