Showa Shell to buy Iranian crude in April -sources

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SINGAPORE/TOKYO April 4 (Reuters) - Showa Shell Sekiyu KK , Japan's largest buyer of Iranian crude, will import oil from the Islamic Republic in April even though differences over terms have held up an annual contract renewal, three sources said on Wednesday.

Japan, the world's third-largest oil consumer, is cutting imports as the United States and European Union tighten sanctions on Iran in response to its nuclear programme, making it difficult for refiners to find shippers, insurers to underwrite trade and banks to clear payments.

Japan has cut imports even as oil demand has risen following last year's nuclear disaster.

Japanese buyers have also been locked in negotiations with Iran for months over annual contracts, with uncertainty surrounding trade with Tehran complicating discussions.

Showa Shell imports 100,000 barrels per day of crude from Iran, and its annual contract was due for renewal April 1.

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