Sanctions on Iran's oil to have impact on world consumers

TEHRAN, Aug. 4 (Xinhua) -- Iran's governor at the Organization of Petroleum Exporting Countries (OPEC) said that Western sanctions on Iranian oil supplies will have dire consequences for the global oil trade and consumers, the semi-official Fars news agency reported on Saturday.

Mohammad-Ali Khatibi said Iran's oil consumers have shown a firm resolve to continue trade with Iran and they have been seeking to find solutions to bring back oil trade with the Islamic republic to its normal trend, said Fars.

"Those who impose sanctions close their eyes on an existing oil producing country of Iran, an issue that can have an impact on oil prices in the market and lead to fluctuations that in turn will be followed by unhappy short-term and long-term consequences for consumers," Khatibi was quoted as saying.

Khatibi said since the EU put into new sanctions and avoided insuring Iranian oil cargoes, Iranian companies have taken the responsibility to provide insurance by forming a consortium so that western companies are no longer the only companies covering insurance for oil cargoes.

Before the sanctions, Western oil insurance companies had monopolized insurance of oil cargoes but the monopoly has been cracked by activating domestic insurance companies and other insurance initiatives by customers of Iranian oil, said Khatibi.

Expressing satisfaction with the trend of Iran's crude sales, Khatibi said oil trade is going on normally, said Fars.

According to media reports, since European Union sanctions which ban the purchase and transport of Iranian oil took effect a month ago, Iran's oil exports have fallen more than 50 percent to 1.2 million barrels a day.

U.S. President Barack Obama announced on Tuesday additional sanctions against Iran's energy and petrochemical sectors over the Islamic republic's disputed nuclear program.

Furthermore, the U.S. Congress on Wednesday passed sanctions seeking to further stifle Iran's oil exports.

The new U.S. Congress measures target any individual or entity that works with Iran's petroleum or natural gas sector, engages in mining of uranium with the country, sells oil tankers to Tehran, or provides insurance to the National Iranian Tanker Co. Enditem