Gulf News reported that Iran may soon be forced to start selling its crude at a discount to attract buyers when the European Union's ban on Iranian crude imports takes effect on July 1st 2012 threatening to destabilize the country's oil dependent economy.

Mr Robin Mills head of Consulting at Manaar Energy in Dubai said that "Iran's oil exports won't be shut down by EU sanctions. There are buyers for Iranian crude such as China, India and Turkey. The question is will the Chinese demand a discount from Iran to continue buying its crude. The idea behind the EU sanctions is less oil export revenue for Iran."

Mr Samuel Ciszuk consultant at London based KBC Process Technology Limited said that as Iran starts losing its European crude markets it will try to market those volumes in Asia, which is the only other region theoretically capable of taking more of its crude.

Mr Ciszuk said that "Given that many Asian buyers are unable and unwilling to take more Iranian crude for political reasons the group to which Iran would have to try to sell in additional volumes is quite small, giving the potential buyers the upper hand in price negotiations. Iran will be the more desperate party to put it more drastically, given its reliance on oil export revenue for its funding. Hence there is reason to expect Iran to have to offer discounts."

(Sourced from Gulf News)