Reed Cavendish Wealth Management - US Grants South Korea Oil Import Waiver
Reed Cavendish Wealth Management - South Korea granted permission to continue to import oil from Iran as US imposes oil sanctions on the Islamic Republic.
TAIPEI, Taiwan, November 13, 2018 (Newswire.com) - South Korea, a US trading partner and one of Asia's major purchasers of Iranian oil requested maximum flexibility from the US after several of its construction firms canceled energy-related deals in Iran due to financial problems.
Reed Cavendish Wealth Management analysts say the United States has agreed to temporarily permit eight countries to continue to import oil from Iran after it decided to re-impose sanctions on the nation's oil exports in an effort to compel Iran to restrict its missile and nuclear activities.
Harvey Grace, Director of Private Clients at Reed Cavendish Wealth Management, says that, under United States law, waivers can be granted for a maximum of 180 days.
Petrochemicals are vital to South Korea's economy and analysts at Reed Cavendish Wealth Management analysts say the imposition of Iran sanctions would cause serious difficulties for the Asian economy. South Korea is the world's fifth largest purchaser of crude oil and, for the most part, the country buys a light form of crude known as condensate from Iran.
Iran's largest oil buyers, all countries in Asia, have been requesting exemptions from the sanctions so that they can continue to purchase oil from the Islamic republic.
As well as winning a temporary waiver to continue buying oil from Iran, South Korea was granted permission to continue to facilitate the purchases through financial transactions with Iran's sanctioned central bank.
In recent months, costly Middle East grades and uncertainty about trade with Iran have forced South Korean purchasers to cut back on buying Iranian oil and make use of alternative suppliers in countries including Africa and America.
Source: Reed Cavendish Wealth Management