Cutting Iranian oil supplies to cost Japanese refiner nearly $1m per month

May 10, 2019 - 19:53

TEHRAN – The President of Japan’s Fuji Oil Company said replacing Iranian oil supplies is going to cost the company an extra 100 million yen ($911,000) each month, Reuters reported.

Speaking at a press conference in Tokyo, Atsuo Shibota noted that although the refinery will be able to buy oil from free markets but it will cost them more.

Fuji Oil said Iranian oil accounted for about 20 percent of the company’s supplies in the financial year through March, down from around 30 percent the previous year.

Japan was among the countries which was granted waiver to continue buying Iranian oil after the United States reimposed sanctions on Iran in November after pulling out of a 2015 nuclear accord between Tehran and six world powers last year.

Aiming to cut Iran’s sales to zero, in April Washington ended all sanctions waivers for those importing Iranian oil.

The Asian country tried all its best to convince the U.S. to let them continue importing oil from Iran.

In late April, Japanese Minister of Economy, Trade, and Industry Hiroshige Seko said, “Japan’s relationship with Iran, as one of the world’s leading oil producing countries, is important as the country (Japan) relies on almost all of its petroleum [needs] on imports.”

Iran exported 1.7 million barrels per day (bpd) of oil in March, the highest since October last year, when shipments had fallen to 1.08 million bpd, data from shipping sources compiled by S&P Global Platts showed.

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