West readies oil plan in case of Iran crisis - News and Current Events | futures io social day trading
futures io futures trading


West readies oil plan in case of Iran crisis
Updated: Views / Replies:607 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

West readies oil plan in case of Iran crisis

  #1 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received

West readies oil plan in case of Iran crisis

(Reuters) - Western powers this week readied a contingency plan to tap a record volume from emergency stockpiles to replace nearly all the Gulf oil that would be lost if Iran blocks the Strait of Hormuz, industry sources and diplomats told Reuters.

They said senior executives of the International Energy Agency (IEA), which advises 28 oil consuming countries, discussed Thursday an existing plan to release up to 14 million barrels per day (bpd) of government-owned oil stored in the United States, Europe, Japan and other importers.

Action on this scale would be more than five times the size of the biggest release in the agency's history -- made in response to Iraq's 1990 invasion of Kuwait.

The maximum release, some 10 million bpd of crude and about 4 million bpd of refined products, could be sustained during the first month of any coordinated action, the plan says.

"This would form a necessary and sensible response to a closure of the strait," a European diplomat told Reuters. "It wouldn't take long to put in place if it was required ... and would be unlikely to prove controversial amongst the (IEA) membership."

A spokesman for the IEA confirmed that the agency has an existing contingency plan that outlines a maximum stock release capability of 14 million bpd for a month. "We're watching the situation carefully," he said of Iran.

Tehran announced plans Friday for new military exercises in the world's most important oil shipping lane, through which some 16 million barrels of crude pass each day. Iranian officials have threatened to block the strait if new sanctions, aimed to discourage Iran's nuclear program, harm Tehran's oil exports. Many oil experts believe the threats are rhetoric aimed at pushing up oil prices in a bid to avert sanctions.

"The IEA is monitoring the situation very closely, and is fairly concerned about it," the diplomat said.
Also watching closely are oil giants Saudi Arabia, Kuwait and Iraq who depend on the strait to move most of their crude.

If the Gulf channel gets blocked, Saudi Arabia, the world's top exporter, can route more crude through the country's East-West pipeline system to the port of Yanbu on the Red Sea.

PIPELINES AVAILABLE
Altogether that network has effective capacity of some 4.5 million bpd and after supplying Saudi domestic refineries in Jeddah, Riyadh, Rabigh and Yanbu - there is about 3 million bpd of export capacity available, said an industry source.
The neighboring United Arab Emirates also has export flexibility. It is nearing completion of the Abu Dhabi crude oil pipeline, which will bypass the strait to ship as much as 1.5 million bpd to the Indian Ocean. Industry sources said the pipeline has been tested and the first flow of oil has already been pumped.

"It's now only a matter of switching on a button," one industry source said.
The IEA tapped emergency stocks in June to help supply refiners caught short by supply lost to Libya's civil war. It was a move that angered the Organization of the Petroleum Exporting Countries which felt the consumer group had overstepped its bounds.

Founded in 1974 in the wake of the Arab oil embargo, the IEA has only drawn down reserves on three occasions. Apart from last summer, member countries released oil in 2005 after Hurricane Katrina damaged offshore oil facilities in the Gulf of Mexico and made available 2.5 million bpd in January 1991 after Iraq's invasion of Kuwait disrupted about 4.3 million bpd.

For now, the Paris-based agency is keeping a close eye on developments and senior management discussed Iran at the meeting Thursday, the European diplomat said.

Western governments are targeting Iranian oil supplies and the European Union is readying a ban on the country's crude oil exports of about 500,000 bpd, while Washington has already imposed financial measures to discourage business with Tehran.

Industry sources said the IEA is unlikely to release stocks in the event of an EU embargo on Iran. While Europe will import less Iranian oil, Tehran will seek to sell larger volumes to its biggest customers in Asia.


Exclusive: West readies oil plan in case of Iran crisis | Reuters

Reply With Quote

Reply



futures io > > > > West readies oil plan in case of Iran crisis

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Peak Oil and the Financial Crisis: Where do Oil Prices Fit In? kbit News and Current Events 1 February 27th, 2012 12:46 AM
Attack on Iran could risk Gulf oil supplies kbit News and Current Events 0 November 15th, 2011 04:59 PM
Europe Readies Plan for Tax on Financial Transactions Quick Summary News and Current Events 1 September 27th, 2011 09:54 PM
China and Iran plan oil barter kbit News and Current Events 0 July 25th, 2011 12:58 PM
Iran president takes over oil ministry temporarily kbit News and Current Events 0 May 16th, 2011 12:40 PM


All times are GMT -4. The time now is 09:06 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-18 in 0.08 seconds with 19 queries on phoenix via your IP 107.20.115.174