Labor's Pains

Sunday, February 26, 2012

I wish I could say this suprising. Greece needs to choose between their oil or the banks who own them

Controversy over Iran cutting oil flow to Greece — RT

Iran has denied a shipment of crude oil to Greece, Fars news agency reported on Sunday. However, according to ISNA, an Iranian oil industry official has rejected the report, saying there had been no changes in Iranian oil shipment schedule.

A Greek oil tanker, denied loading of the expected 500,000 barrels of oil in Iran, has returned home, the Fars report says. The shipment was meant for Hellenic Petroleum refinery. The refinery official, however, denied that the company was refused any oil shipments from Iran.

“That has nothing to do with us … all supplies from Iran have been processed normally,” the official said, as cited by Reuters.

... According to some reports, over 50 per cent of all oil imported in Greece in 2011 was of Iranian origin. By comparison, in 2010 that amount was only about 16 per cent, while 46 per cent was imported from Russia.

...­If Iran indeed halts oil shipments to Greece that would not be a “checkmate”, but certainly a “check” to the whole of Europe, believes strategy consultant Gonzalo Lira.

“In this chess game that is being played between the West and Iran, Iran has just made a brilliant move,” Lira told RT.

The interruption of oil flow from Iran will be catastrophic for Greece, but it will be just as bad for other European countries’ economies, and specifically the European banks, says Lira. Greece has no means to pay off its debt before March 20 deadline and at the same time pay for oil from Saudi Arabia or Russia, who refuse to give Greece any oil except in exchange for hard currency.

“[Greece] has been getting this oil at incredibly favorable terms from Iran. Iran has been essentially giving free oil to Greece,” he explained.

LP - Who could have predicted this?

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