Hellenic Petroleum cautious on US Iran sanctions

European oil companies are not ruling out reducing Iranian oil imports after the threat of new US sanctions, with some expecting banking issues to hinder trade, but there was no rush to immediately cut volumes.

The US sanctions have a 180-day period during which buyers should “wind down” oil purchases, meaning any loss of supply will not be immediately felt – and companies don’t have to rush to find alternatives.

But Greece’s biggest oil refiner Hellenic Petroleum, which was the first European company to agree to buy crude oil from the National Iranian Oil Company (NIOC) after sanctions on Iran were lifted in January 2016, rang a cautious note

“We are closely monitoring developments following [the] US administration decision… and will assess our position and commercial arrangements accordingly,” Hellenic Petroleum said: “In any case we will make sure that we comply with the applicable international regulatory framework and, given our crude supply flexibility and diversification, we do not expect any significant effect on our operations.”

[Reuters]