(MENAFN- Gulf Times) European refiners from Spain to Greece are ready to resume purchases of crude from Iran as talks on a nuclear deal that could allow the country's return to oil markets remained deadlocked.
Italy's Saras said it would buy Iranian crude if sanctions were to end, while Spain's Cepsa said it would "definitely" consider it. Hellenic Petroleum said the return of Iranian barrels would be positive for refiners.
"As soon as Iranian oil becomes available, we will certainly start buying again," Loukas Tripelopoulos, a spokesman for Motor Oil Hellas, said by e-mail on July 3. "Motor Oil was always very fond of Iranian crude."
Italy, Spain and Greece were the top European buyers of Iranian crude
until the imposition of sanctions on the Middle East nation in 2012, according to data from the International Energy Agency. Together, they imported 456,000 bpd in 2011, or 78% of total Iranian shipments to Europe.
The return of Iran would be positive for refiners that replaced some of those barrels with more expensive Russian Urals, said Ehsan Ul-Haq, a senior analyst at KBC Process Technology Ltd. The availability of Iranian oil would increase the competition among heavy sour grades in the region, putting downward pressure on prices.
"If Iran comes back, they have the possibility of getting medium sour crude at cheaper price than Urals," Ul-Haq said by e-mail on Friday. "This will make the overall refinery economics in the Mediterranean better."
Last month, Urals sold at the highest premium to Dated Brent, the global benchmark for oil, in more than a year and a half, according to a survey of traders and brokers who monitor the Platts pricing window.
A spokesman for Repsol declined to comment on the potential contribution of Iranian crude to its refineries in Spain and whether the company would purchase it if it became available. Italy's Eni didn't respond to an e-mail seeking comment.
The return of Iranian oil to the market looked to be further delayed after the Middle Eastern country and six world powers failed to reach a deal that would have ended economic sanctions on the Persian nation by July 9.
The US Congress now has 60 days to review and potentially reject any accord sent to lawmakers before September 8.
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