LONDON (Reuters)
- An increase in world oil prices has more than compensated Iran for revenues lost to lower crude exports because of sanctions imposed by the West, the head of the world's leading oil trader said Tuesday. (2/21/12)

Ian Taylor, chief executive of privately-held Vitol, said a decline in the value of the euro versus the U.S. dollar had also lifted the cost of dollar-denominated oil sales to European Union countries.

"The Iranians now want the price as high as possible as they've got less volumes to sell. I reckon they are probably quite close to winning based on the numbers. That was what everybody in the industry always thought would be the likely result," said Taylor.

"The politicians are all avoiding the subject at the moment but as you know oil is extremely expensive, especially in euros," he said.

Brent crude traded near $121 a barrel Tuesday, up from $107 a barrel at the start of the year but below a record high in 2008 of $147.

A decline in Iranian oil sales since the European Union announced an embargo on Iranian oil imports from July 1 has been a leading factor in the price rise. The weaker euro means oil measured in euros is near record highs. Brent in euros touched a high of 91.8 euros a barrel last week compared to a record 93.46 euros in July 2008.

The U.S. and Europe imposed tough financial measures on Iran in an attempt to stop Tehran developing what they fear is a nuclear weapons capability. Western diplomats say sanctions, including the EU embargo, aim to cut Iran's oil revenues.

Iran says its nuclear program is to generate electricity and that it will find other customers for its oil. It has retaliated by ordering a halt to oil sales to British and French companies.
http://uk.news.yahoo.com/iran-winning-western-oil-sanctions-vitol-155947510.html