US sanctions on Iranian oil stir up a corner of the market

If the current level of oil prices is sustained, fuel prices could rise sharply after the general election is held on May 9 and 2018 CPI inflation could rise above its 2.5% forecast towards the top end of Bank Negara Malaysia

SINGAPORE: Effects of the US decision to renew sanctions on Organisation of Petroleum Exporting Countries (Opec) member Iran are already spreading beyond the world of crude to some corners of the oil market.

Refiners in South Korea, a US ally as well as one of Iran’s largest customers, are shunning a type of oil known as condensate from the Islamic republic to feed the nation’s petrochemical plants, and instead buying unusually large amounts of a processed fuel known as naphtha from elsewhere.