Loan Adviser

Obama fuel sales firm against Iran draft

The new law prohibits the Department of Energy United States award contracts to supply oil to the country's strategic reserve to companies that sell or send gasoline to Iran.

Sanctions imposed on providers Iran fuel are part of a proposed program of spending on energy and water signed by Obama. The project was sponsored by Sens. Jon Kyl and Susan Collins.

Time is running out for Iran to abandon its nuclear weapons program, the senators said earlier on its initiative.

Congress and the Obama administration fear the uranium enrichment program in Iran is used to develop nuclear weapons, while Tehran says its aims are peaceful, aimed at generating electricity.

Congress expected to cut gasoline supplies to Iran will press Tehran to depose its nuclear program.

Iran has one of the largest oil reserves world, but imports 40 percent of its gasoline because it lacks refining capacity. Government subsidies also help keep prices at a level much lower than other countries.

However, the new sanctions will have little impact because oil stocks States United are only 2 million barrels less than 727 million barrels of capacity, which will be reached in January.

The emergency reserve was created by Congress in the mid-decade 1970, after the Arab oil embargo.

Meanwhile, a committee of the House of Representatives of the United States passed legislation Wednesday to extend sanctions against Iran dating back to 1996 and was actually prohibits companies from selling to Iran of refined petroleum products, including gasoline, to do business in that country.

The project includes companies that provide services or boarding vessels for the transport oil.

The legislation passed Wednesday by a vote sung in the foreign affairs committee of the House.

But it still must be approved byother committees and the full Congress before becoming law and even if this happens, it is unclear whether it will be applied.

The government says Obama is committed to working with its partners world to put pressure on Iran, which could resist unilateral action.

(Editing by Rex Gowar Spanish and Monica Vargas)