Japan Say Iranian Oil Sanctions Won’t Impact National Oil Reserves

Japan expects a limited impact from the U.S. decision not to renew waivers previously granted on Iran oil import sanctions, the country’s trade and industry minister said on Tuesday.

The United States on Monday demanded all buyers of Iranian oil stop purchases by May 1 or face sanctions, a move to choke off Tehran’s oil revenues that sent benchmark crude prices to six-month highs. Japan is among a group of countries that were previously granted sanctions waivers. [O/R]


Brent crude graph

Speaking at a regular press conference, Japan’s Minister of Economy, Trade and Industry (METI) Hiroshige Seko told reporters the government did not see any need to tap national oil reserves following the U.S. decision.

Japan, the world’s fourth-biggest oil consumer, has been reducing its reliance on Iranian crude supplies. Iran now accounts for about 3 percent of purchases, Seko said.

Via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza