PJSC LUKOIL (LUKOY)

[ChitForBrains]

This is a new one me. Don't want prices for oil to rise? They must have oil production in Iran, or contracts to sell at the current price area or political BS, or what am I missing?

Europe-wide crude oil sanctions against Iran would "dramatically" boost the price of Russia's Urals blend, said Leonid Fedun, deputy chief executive of Russian oil major OAO Lukoil Holdings (LKOH.RS), on Friday.

"The price on Urals will increase dramatically if sanctions are imposed on Iran," said Fedun. "But I'm not convinced that would happen, because it would mean taking around 4 million barrels off the market."

Growing concerns over tensions with Iran are pushing prices higher, as U.K. and Canada introduced fresh financial sanctions on Iran, while the U.S. also tightened their sanctions further, and France Thursday proposed a Europe-wide ban on Iranian crude imports.

Urals crude, which refiners can use as an alternative to Iranian oil, rose to trade at a premium of 50 cents above the Dated Brent benchmark Thursday. Historically, Urals trades at a discount to Brent, due to its lower quality compared to Brent.

"We would like the situation to be solved in a normal and peaceful way," said Fedun, adding that sanctions would cause harm to the market.