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United States sets new rules in oil market in a hope that Iran's finances will be reduced. The article talks about the event and its aftereffects. United States tightens the finances to discourage. As a result of this event Iran, world's third largest exporter of crude oil has to face some new obstacles for getting paid for its exports of oil. On November 21, The United States pulled financial strings with some extra strength that will increase the control on the banking system and oil industry in Iran. European Union is expected to follow the steps taken by United States as France has suggested EU to ban oil from Iran as the country is also a subject to some U.N. and EU sanctions. The United States is also trying to put curb on Iran's finance by reducing the number of oil buyers as oil is Iran's main source of income. United States is doing so because the report from the United Nations' International Atomic Energy Agency revealed that Iran was working on a nuclear weapons program. The statistics revealed that Iran extracted 3.6 million barrels of oil in a day last month, and exported an average 2.58 million barrels a day in 2010. According to some people, who are presently dealing with the transactions and the processes said that the current sanctions have made Indian importers to make their financial transactions of payments for Iranian crude through a Turkish bank. They also revealed that they were worried and scared of the future as Turkey may stop cooperating any time under the pressures of new rules of the United States. And so, to be on safer side, they have plans to ask banks in Russia for help. The experts, analysts from all over the world are talking openly about their point of view about the effects of United States' strategies about Iran and the judgments about oil industry and oil investments. The analyst in Dubai, Middle East say that the United States is trying its best to shrink the number of buyers of oil by setting new rules in hope of having more discounts from Iran. A London-based specialist of trade finance also said that the latest measures are sure to make the oil investment trades with Iran more difficult. He also said that the sanctions have already compelled the oil traders in Europe's financial hub, London, pay for the crude oil in the currency other than dollar. The managing director of a big player of oil industry in Switzerland said in his advice to oil investors that the situation will be more difficult if Europe puts more restrictions on Iranian crude. If it happens so, the oil provider nations in Persian Gulf will have to offer oil for lesser prices to the refiners in Asia, the biggest market.
The writer is a knowledgeable columnist in oil related fields, who frequently writes articles related to oil prices & indexes and crude oil including tips on investment in oil. Please visit oil.com for more details.
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