Friday, June 22, 2012

Japanese Parliament Approves Law to Continue Importing Iranian Oil

The Japanese lower house approved a bill that gave the government the authority to ensure the delivery of Iranian crude oil in an effort to fight EU sanctions against Tehran.

The Japanese lower house, which consists mainly of members of the opposition in parliament, urged Tokyo to provide $ 7.6 billion in insurance for protection for each tanker that imports Iranian crude.

In 2011, Japan imported nine percent of its oil needs from Iran. The country was freed from US unilateral sanctions on the Iranian oil industry with the consequence of having to reduce its supply of imported crude oil from Tehran.
The third largest economy in the world does not stop buying crude oil from Iran over concerns about a possible surge in global oil prices, and negative effects on Japan's economic development.

The US has made exceptions for 18 countries, including 10 European Union countries, Japan, India, South Korea, Sri Lanka, Malaysia, Taiwan, Turkey and South Africa, from sanctions against Iranian crude oil.
Akio Shibata, an economist from the Japan National Resources Research institute, said, "Japan needs Iranian oil. The Japanese government must create a mechanism to enable the sustainable purchase of Iranian crude oil amid intense EU sanctions."
"Japan imports around 350,000 barrels of crude oil per day from Iran. If we lose Iran's oil supply, we must ask Saudi Arabia and Qatar to replace it. But we don't know whether they are able to fulfill that capacity," he added.

Shibata warned that an embargo on Iranian oil would result in a surge in world crude oil prices. In addition, it can cause the Japanese economy to be shaken, especially after the emergence of signs of economic recovery after the earthquake.

IRIB / The Truth Seeker Media

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