US buying Iranian oil suspected
There is consensus that super powers violate globally agreed
policies, when their own interest is at stake. Though, one can come up with a
long list of such policy violations, stories of world’s leading economies
defying economic sanctions imposed on Iran have started appearing as headlines
in global media.
The latest story publish in Eurasia Review has raised
suspicions that even United States, the mastermind of these sanctions was involved in buying Iranian oil. The expected copybook reply
could be “We placed order with an exporter and were not aware that the load was
blended with oil of Iranian origin.”
Eurasia Review report
says, “There is a high probability that US sanctions against Iran have been
violated by its own army. Part of the $1.55 billion in fuel the US bought from
Turkmenistan for the Afghan army in the last five years may have originated
from Iran.”
A report by the Special Inspector General for Afghanistan
Reconstruction (SIGAR) has also suggested that “despite actions taken by DOD to
prevent the purchase of Iranian fuel with US funds, risks remain that US
economic sanctions could [have been] violated” from 2007 to 2012.
The suspicion rises because most of the fuel being used in
Afghanistan comes from neighboring Iran. Because of the US sanctions on Tehran
restricting the trade of Iranian oil and petroleum products, the ISAF has been
required to abide by the regulations and buy petrol from eight Afghan-owned
companies that deliver petroleum from Turkmenistan, which borders both Iran and
Afghanistan.
Turkmenistan is a major regional oil producer, which also
sells petroleum products made in Kazakhstan, Uzbekistan, Russia and even Iran.
Petrol vendors in Turkmenistan use flexible supply schemes, meaning that fuel of
various origins could potentially be blended together.
In response SIGAR report, the US Embassy in Kabul stated “It
is possible that if blending is taking place in Turkmenistan it could contain
some Iranian fuel,” but refused to admit that fuel imported from Russia could
also be blended with Iranian fuel prior to its export to Afghanistan.
It is believed that suppliers are unlikely to blend Iranian
fuel, or any other product, with other sourced fuel because of the potential
that blending could cause product deviation from specification standards and
potentially cause a rejection of the entire shipment, said the Embassy.
A Reuter report says the US believes that the most common
trick Iran uses to dodge sanctions is ship-to-ship transfers (STS), in which large
tankers leaving Iran’s ports offload Iranian oil to smaller vessels. Then, the
Iranian oil is blended with that of another country to disguise it. After that,
new shipping documents are issued, giving the blended oil shipment a new
identity.
One can still recall that when restrictions were imposed on
buying oil from Iran many countries were exempted only to save their economies
from sudden and grave shocks. Some of the countries are still buying oil from
Iran.
In the recent past Iran was OPEC’s second largest oil
producing member, exporting 2.2 million barrels oil per day. The economic sanctions
have more than halved oil exports to 890,000 barrels by September 2012.
However, Iranian crude oil exports once again rose to 1.4
million barrels per day lately. Most of this oil was bought by three leading
Asian economies; China, India and Japan, where demand for energy has been on
the rise. The expansion of tanker fleet by Iran has also helped it to export
more oil.
Naeem Baigh has posted this comment on my Facebook wall, “ Shabbir Kazmi Sahib, writing about 'Oil' is difficult and writing on how it steers from the barriers of sanctions is extremely difficult. No doubt you have chosen a very tricky subject and tried to prove your hypothesis. The crude oil is classified into a range of categories like Brent, WTI, Nordic, Nigerian sweat and Arabian lights etc. The refineries all over the world were designed to process a specific type/category of crude oil. It is not possible for them to switch over the category overnight and start processing. Iranian and Arabian are low quality crude and traded at a reasonable discount against the quoted prices of Brent. Japan, China and India are the main consumers of Iranian crude. Iranian and Arabian oils do not have a market in Europe, where Nordic oil has the monopoly. However, France is buying about 200,000 barrels of Iraqi oil per day. USA is heavily importing crude from Canada. They also buy from Saudi Arabia and Nigeria for meeting defence requirement. Although Venezuelan oil is high quality yet it is not imported by USA directly."
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