USA/UK: OIL MARKET OPENS ON A HIGH FOLLOWING ANNOUNCEMENT OF U.S TRADE EMBARGO AGAINST IRAN

Record ID: 344777

  • Title: USA/UK: OIL MARKET OPENS ON A HIGH FOLLOWING ANNOUNCEMENT OF U.S TRADE EMBARGO AGAINST IRAN
  • Date: 1st May 1995
  • Summary: NEW YORK, UNITED STATES AND LONDON, UNITED KINGDOM (MAY 1, 1995) (RTV - ACCESS ALL) LONDON, UNITED KINGDOM 1. MCU/CU PRINTED STATEMENT ISSUED BY IRANIAN FOREIGN MINISTRY NEW YORK, UNITED STATES (3 SHOTS) 0.18 NEW YORK CITY 2. GV/VARIOUS VIEWS OF OIL TRADERS ON NEW YORK MARKET (4 SHOTS) 0.43 3. MCU INDEPENDENT TRADER GARY LAPAYOVER, ON FLOOR OF NEW YORK MERCANTILE EXCHANGE SPEAKING (ENGLISH) 1.22 4. GV OIL TRADERS 1.27 SEQ.3: TRANSCRIPT; LAPAYOVER: " I WOULD'NT SAY IT WOULD BE SHORT TERM AT THIS POINT, THE MARKET HAS BEEN PRIMED AS I SAID BEFORE FOR A MOVE TO THE UP SIDE . SO THIS STATEMENT (BY US PRESIDENT BILL CLINTON) WHICH MAY ONLY HAVE AN IMPACT FOR SEVERAL MONTHS AND NOT KNOWING HOW LONG WE WILL CONTINUE THIS BAN - THE THREAT OF IT WILL AFFECT THE MARKET SEVERAL MONTHS OUT BECAUSE PEOPLE ARE STOCK PILING THEIR OIL, MAKING THEIR DETERMINATIONS OF WHAT THEY REQUIRE IN ADVANCE - I THINK THIS WILL BE JUST ONE MORE BUILDING BLOCK FOR CRUDE OIL TO APPROACH AND BREAK THROUGH THERE 21 DOLLAR AREA." Initials Script is copyright Reuters Limited. All rights reserved.
  • Embargoed: 16th May 1995 13:00
  • Keywords:
  • Location: NEW YORK CITY, NEW YORK, UNITED STATES AND LONDON, UNITED KINGDOM
  • City:
  • Country: USA
  • Reuters ID: LVADM2D7SQ8XYPXTUGVQWUCENK38
  • Story Text: Oil markets opened higher on Monday (May 1) following the announcement by United States (U.S.) President Bill Clinton that he would ban U.S. companies buying oil from Iran.

    The June contract for North Sea benchmark Brent on London's International Petroleum Exchange reached as high as 19.38 U.S.

    dollars a barrel on Monday morning, not far from the 19.41 U.S.

    dollars level last seen on August 1, 1994.

    But traders were unsure there was much more bullish potential since the ban had been anticipated for weeks.

    And the ban may eventually bring the market down when Tehran looks for alternative buyers for more than a fifth of its total crude oil exports.

    Experts say the ban would have its biggest impact on U.S. oil firms which buy a large part of Iran's crude oil exports.

    U.S. firms have been prohibited from buying Iranian oil and selling it in the United States, but to date they have been allowed to purchase and sell the oil elsewhere in the world. Their annual purchases of Iranian oil top 4 billion U.S. dollars.

    The Iranian Foreign Ministry issued a statement saying that America's policy in the Middle East was based on support for the zionist regime and did not take account of America's national interest. "If purchasing oil from Iran was in the interest of America, now the change of this policy is certainly a loss for American companies.

    "However, the economic world today is a world of competition and Iran maintains other alternatives for its trade", the statement said.


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