Wednesday, July 11, 2012

Eye on Iran: Iraq Crude Production Overtakes Iran as OPEC Trims Output






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Bloomberg: "Iraq's crude production overtook Iran's last month for the first time in more than two decades as Iran led a decline in OPEC output ahead of a European Union ban on purchases from the nation, according to the producer group. Iraq pumped 2.984 million barrels a day in June, outpacing Iran's 2.963 million, the Organization of Petroleum Exporting Countries' Vienna-based secretariat said today in its Monthly Oil Market Report. That's the first time Iraq's output has exceeded Iran's since 1988, when the countries ended their eight-year war, statistics compiled by BP Plc (BP/) show." http://t.uani.com/OxvBQU

AFP: "Iran has warned the media against the publication of reports concerning the impact of Western sanctions, urging it to cooperate so that 'the country is not hurt,' local newspapers reported on Wednesday. 'Our country is not in a position to allow the media to publish (any) news or analysis which is not compatible with the regime's and national interests,' said Mohammad Hosseini, the Minister of Culture and Islamic Guidance, whose ministry oversees the Iranian print media and official news websites. 'The situation regarding sanctions and other pressures, especially in economy ... requires more cooperation by the media so the country is not hurt,' Hosseini said in comments originally published on the dolat.ir government site." http://t.uani.com/NlGYgV

Just-Auto: "Iranian components division, SAPCO (Supplying Automotive Part Co) says it is dramatically increasing the localisation of content to build IKCO's new Peugeot 405-based pick-up truck next year as supply from the French automaker starts to dry up... 'There are some problems now in Peugeot delivery about parts, but we are very urgently and very quickly localising direct sourcing from other countries,' SAPCO (Supplying Automotive Part Co) development department project manager, Mohsen Alikhani, told just-auto from Tehran. 'Peugeot has not stopped supplying parts but [it] has been diminished, it is reduced.' ... Powerful US lobby groups such as United Against Nuclear Iran (UANI) have specifically targeted Paris and and Detroit by highlighting the 'taxpayer-funded US$50bn bailout of GM' in order to pressure both parties." http://t.uani.com/LHMmhf
MTN Action Alert   
Nuclear Program
  
Bloomberg: "Iran's military continues to improve the accuracy and killing power of its long- and short-range ballistic missiles, including designing a weapon to target vessels, according to a Pentagon report to Congress. 'Iran has boosted the lethality and effectiveness of existing systems by improving accuracy and developing new submunition payloads' that extend the destructive power over a wider area than a solid warhead, according to the June 29 report signed by U.S. Defense Secretary Leon Panetta. The improvements are in tandem with regular ballistic-missile training that 'continues throughout the country' and the addition of 'new ships and submarines,' the report found." http://t.uani.com/MjnNDB

Sanctions

Reuters: "Top oil exporter Saudi Arabia ramped up output to record rates in June despite a big drop in oil prices as Iranian production sank to its lowest in more than 20 years, OPEC said on Wednesday... Iran's output slumped by almost 190,000 bpd to 2.96 million bpd, according to secondary sources, OPEC said, allowing former rival Iraq to overtake it as the 12-member group's second biggest producer after Saudi Arabia... Iran did not submit its own production figures to OPEC for June, the first time it has not done so this year. In May, it reported an output figure of 3.76 million bpd, 600,000 bpd above estimates from secondary sources." http://t.uani.com/S4ftdn

CNN: "Despite sanctions that have crippled Iran's oil exports, the country continues to pump at nearly pre-sanction levels. And since the oil rich nation is struggling to sell its oil, it has begun funneling the excess crude to storage locations on land and sea.  So why doesn't Iran simply turn off some oil wells to manage its production? Well, shutting off oil fields isn't as simple as turning a tap. It's a complicated process that ultimately could harm future production... A cargo broker in New York estimated that Iran has used up about half its tanker storage capacity. At a million barrels a day, it's only a matter of weeks before storage runs out completely. 'Then things get really interesting,' said the broker." http://t.uani.com/MkyqpJ

Reuters: "India has given state-run insurers approval to provide limited cover to its ships transporting Iran's oil, allowing refiners to avoid any interruption in supplies because of the constraints of an Iranian fleet struggling with tough Western sanctions. An oil embargo by the European Union took effect on July 1 and bans firms from insuring Iranian shipments, forcing China and India to ask Iran's oil shipper, NITC, to deliver crude in its vessels... India's Insurance and Regulatory and Development Authority has agreed to allow state-run insurers to replace their European counterparts, enabling at least Shipping Corp Of India to resume transporting Iranian oil, officials said... General Insurance Corp of India will be the re-insurer and cover will be extended by any of four state-run non-life insurance firms: United India Insurance, New India Assurance Co. Ltd., National Insurance Co. Ltd. and the Oriental Insurance Co. Ltd." http://t.uani.com/S4xiJx

Reuters: "Japanese insurers are expanding their maritime coverage to allow more domestic tankers to transport Iranian crude, as Tokyo looks to keep oil flowing despite tough Western sanctions, industry sources said on Wednesday. Japan, Iran's third biggest oil buyer, is expected to resume imports of the OPEC member's crude in August after halting shipments this month as buyers held back to avoid any risk of running afoul of European Union sanctions, which took effect last week... To maintain Japan's oil trade with Iran, the Asian country's insurers have increased their cargo and hull cover for tankers carrying Iranian crude to 39 billion yen ($491 million), up 30 percent from an initial plan unveiled in April, industry sources, who declined to be identified due to the sensitivity of the matter, said. That will allow two supertankers, instead of one, to transport Iranian oil through the Middle East Gulf at one time and boost the country's shipping capacity from Tehran to more than 200,000 barrels per day." http://t.uani.com/NgAdeF

Bloomberg: "Wealthy Iranians in Turkey are collecting gold on behalf of the Iranian central bank and exporting it to Iran, Turkey's Zaman newspaper reported. The expatriates are strengthening the resources of the Islamic republic's central bank amid concern over tougher sanctions against Iran, the Istanbul-based newspaper reported, citing a Turkish economy administration official it didn't name. Iranians in Dubai and India are also collecting gold and sending it to the Iranian central bank, Zaman said, citing the official. Some gold is being imported into Turkey from Europe, refined or re-shaped and then exported to Iran, Zaman said." http://t.uani.com/Oxr0OE

Bloomberg: "Iranian Supreme Leader Ayatollah Ali Khamenei said his nation has become immune to Western sanctions and won't suffer. 'These days, Westerners are making a whole lot of noise regarding sanctions against Iran,' Khamenei was quoted as saying in Tehran today by the official Islamic Republic News Agency. 'They don't understand that throughout the last 30 years they themselves vaccinated the Iranian nation against sanctions.' ... 'The Iranian nation in the past three decades stood against all the conspiracies and sanctions and made progress and now we are 100 percent stronger than 30 years ago,' Khamenei said." http://t.uani.com/MijVq2

Bloomberg: "Iran's government has postponed further cuts in energy and food subsidies until the next Iranian year that starts March 21, 2013, Shargh reported, citing Saeed Arbabi, a member of the parliament's economic committee. The government and the economic committee made the 'rational' decision to halt the plan in light of the level of inflation, Arbabi said, according to the Tehran-based newspaper. Raising prices by as much as 20 percent when they are already high 'would have serious consequences,' he said." http://t.uani.com/Nk0AT9

Terrorism

AP: "Two Iranians accused of planning attacks on Western targets in Kenya shipped more than 100 kilograms (220 pounds) of powerful explosive into this East African country, and most of it has not been recovered, a police officer told a court Tuesday. Iranian nationals Ahmad Abolfathi Mohammad and Sayed Mansour Mousavi are charged with preparing to commit acts intended to cause grievous harm after they were arrested last month and led officials to a 15-kilogram (33-pound) stash of the explosive RDX. Police Sgt. Erick Opagal, an investigator with Kenya's Anti-Terrorism Police Unit, asked the court to deny the two suspects bail because more than 85 kilograms (187 pounds) of the explosive authorities say was shipped into Kenya has not been found." http://t.uani.com/NKGRdz

National Post: "Canada's Foreign Affairs department issued a warning Tuesday to Iranian diplomats who are allegedly using their Ottawa embassy to recruit Iranian-Canadians to serve the Islamic Republic's interests. 'Iranian-Canadians have rejected the oppressive Iranian regime and have chosen to come to Canada to build better lives,' a spokesperson for Foreign Affairs Minister John Baird said in a statement to the National Post. 'The Iranian Embassy should not interfere in their choices. Canadian security organizations will act to prevent threats and intimidation of Canadians.' ... Experts say Mr. Mohammadi's startlingly blunt interview has not only jeopardized Canada's national security reputation abroad, but also sparked very real fears of espionage, terrorist recruitment and a possible attack on the U.S. from north of the border." http://t.uani.com/NjZnv1

Human Rights

CNN: "It has been more than 1,000 days since a Christian pastor was thrown into an Iranian jail for leaving Islam and sentenced to death for, as the U.S. State Department put it, 'simply following his faith.' On Monday, the agency once again called on Iran to release Youcef Nadarkhani. 'Pastor Nadarkhani still faces the threat of execution for simply following his faith, and we repeat our call for Iranian authorities to release him immediately,' said a statement from State Department spokeswoman Victoria Nuland. His next scheduled court date is September 8." http://t.uani.com/NodpeU

Foreign Affairs

Fox News: "A little more than a week after accusing Iran of supplying arms for Syria's bloody crackdown on democracy-minded rebels, the UN has given Tehran a key seat at negotiations for a global arms treaty. The stunning appointment by member states attending the UN Conference of the Arms Trade Treaty in New York came last week, and is just the latest example of the world body appointing rogue and repressive regimes to leadership roles. The 15-nation committee to which Iran was appointed hopes to guide what could eventually become the first legally binding global treaty aimed at regulating the international trade of conventional arms. Critics say asking Iran to help craft a treaty aimed at stopping arms proliferation to terrorist groups and rogue states makes a mockery of the talks. Just two weeks ago, the UN Security Council accused Tehran of shipping arms to Syria, and Iran is also suspected of hiding illegal nuclear weapons facilities from international watchdogs." http://t.uani.com/LNjn70

AFP: "The United States insisted Tuesday that it sees no role for Iran in resolving the conflict in Syria, in an implicit rebuff to UN envoy Kofi Annan's outreach to Tehran. Annan left Tehran on Tuesday after a visit to drum up support for his UN and Arab League peace plan for Syria, saying Iran could play a 'positive role' in ending a crisis that has cost more than 17,000 lives. In Washington, officials were skeptical, and insisted the situation will not be resolved until Tehran's Syrian ally President Bashar al-Assad steps down and allows a negotiated political transition. 'I don't think anybody with a straight face could argue that Iran has had a positive impact on developments in Syria,' White House spokesman Jay Carney told reporters aboard US President Barack Obama's jet Air Force One." http://t.uani.com/O5krC0

Opinion & Analysis

John Bolton in The Weekly Standard: "The ongoing failure of talks concerning Iran's nuclear weapons program, most recently in Istanbul on July 3, is no surprise. This latest negotiation charade between Iran and the Security Council's five permanent members plus Germany (P5+1) is the culmination of 10 years of innumerable diplomatic endeavors. These efforts rested on the erroneous premise that Iran could be talked out of its decades-long effort to build deliverable nuclear weapons. Now, almost no one argues there is light at the end of the negotiation tunnel. The most they hope for, especially President Obama, is that the plain futility of diplomacy's latest pretense will not lead Israel to attack Iran's nuclear program before our November 6 election. Obama fears such an Israeli strike more than he fears Iran actually fabricating nuclear weapons because of his dangerous misperception that a nuclear Iran could be contained and deterred. Even worse, Iran fully understands Obama's thinking, and sees no reason to believe it will change if he's reelected. We are well past the point where sanctions against Iran's nuclear program achieve more than making their proponents feel good about 'doing something.' They neither restrain Iran's nuclear program nor effectively advance the goal of replacing the mullahs with a regime that would truly forswear nuclear weapons. Combined with material assistance to Iran's extensive opposition, sanctions could help destabilize Tehran, but unfortunately both the Obama and Bush administrations have failed on that score. And even Team Obama does not believe sanctions will stop Iran's weapons program. Secretary of State Hillary Clinton said on June 30, for example, that 'the pressure track is our primary focus now, and we believe that the economic sanctions are bringing Iran to the table.' That is a far cry from actually terminating the weapons program. Moreover, what would a negotiated deal look like? Our goal is to deny Iran nuclear weapons; Tehran manifestly wants the opposite. What is the compromise? Iran gets to keep a small nuclear weapons program? Not even the most effervescent Obama supporters (publicly) endorse such a result. The fundamental problem today is that there simply is no effective, enforceable sanctions regime that will compel Iran to abandon its nuclear aspirations. It may once have been possible, a decade ago or more, but even then would have required full, active cooperation from Russia, China, and others; comprehensive sanctions, not the ad hoc structure actually created; armed enforcement; and checkmating Iran's highly successful cheating and evasion efforts. That theoretical chance has long since disappeared." http://t.uani.com/PQrHsR

Eye on Iran is a periodic news summary from United Against Nuclear Iran (UANI) a program of the American Coalition Against Nuclear Iran, Inc., a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. Eye on Iran is not intended as a comprehensive media clips summary but rather a selection of media elements with discreet analysis in a PDA friendly format. For more information please email Press@UnitedAgainstNuclearIran.com

United Against Nuclear Iran (UANI) is a non-partisan, broad-based coalition that is united in a commitment to prevent Iran from fulfilling its ambition to become a regional super-power possessing nuclear weapons.  UANI is an issue-based coalition in which each coalition member will have its own interests as well as the collective goal of advancing an Iran free of nuclear weapons.

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