Exclusive - Europe's big buyers cut ties with Iran oil

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(Reuters) - Iran's top oil buyers in Europe are making substantial cuts in supply months in advance of European Union sanctions, reducing flows to the continent in March by more than a third - or over 300,000 barrels daily, industry sources said on Thursday.

France's Total has already stopped buying the crude, which is subject to European Union sanctions from July 1 and market sources say Royal Dutch Shell has scaled back sharply.

Motor Oil Hellas of Greece was also thought to have cut out Iranian crude altogether and compatriot Hellenic Petroleum along with Spain's Cepsa and Repsol were curbing imports.

"We have significantly reduced our purchases because of the political situation," said one customer, until now one of the larger EU buyers of Iranian crude. "We are still lifting - but much, much less than two months ago."

http://uk.reuters.com/article/2012/02/16/uk-iran-europe-oil-idUKTRE81F1IE20120216

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1. all the better to jack up costs of gasoline and other oil products. nt