News

Displaced cargoes from Iran are pressuring gasoline
premiums in the Middle East, traders said yesterday. As tougher U.S. and
EU sanctions have made it more difficult to supply gasoline to Iran, so
far only three cargoes of gasoline have reached Iran in July, much less
than the seasonal norm.

The diminishing supply of gasoline to Iran has created a
surplus in the market and because of that, buyers are paying lower
premiums. One trader said. "Iranians are paying more, but this does not
mean others will pay more."

[Iran could have stockpiled gasoline ahead of the
sanctions. But sooner or later it will have to replenish the stockpiles
and at that time, Iran will have to find suppliers who will be willing
to take the risk of violating UN sanctions. Based on South Africa's
experience those who will accept cash in advance and a higher premium
will be more willing than those who will be prevailing at the market at
the time of the purchase.]