EU firms renew Iran oil deals to win sanction reprieve

[maddezmom]

LONDON, Jan 12 (Reuters) - Italian, Spanish and Greek companies have extended most of their oil supply deals with Iran for 2012, so that most of Tehran's supplies to the European Union are likely be exempted from sanctions for at least the first half of the year.

Trading sources told Reuters that Italy's Saras, ERG and Iplom, Greece's Hellenic as well as Spain's Repsol have either extended or have not scrapped existing term supply contacts with Iran for 2012.

"We kept our 2-year deal with Iran," said a trader with a refiner.

"At the moment it is business as usual, but of course we are considering potential alternatives. Asking the Saudis for more crude is one possibility," said a trader with an Italian company.

more:http://www.reuters.com/article/2012/01/12/iran-oil-idUSL6E8CC4PB20120112

[dipsydoodle]

1. Hardly surprising

They get special terms form Iran and increased prices for alternatives would further damage their own economies. In the case of Italy they'd already needed to switch from their normal supplies from Libya - hence the Iranian contracts.