US Sanctions On Oil Exports Not Impacting Us: Iran

Gladys Abbott
November 2, 2018

However, Jahangiri insisted that US claims of Saudi oil replacing Iran's exports are a "lie" and said that oil has climbed from $30 to $80 a barrel and if the USA could stop all Iranian exports, the price would have reached $100.

What's more, EIA said the higher crude oil prices at the end of 2018 and in 2019 will likely support increased global crude oil production.

"We are determined to implement our policy of maximum pressure on Iran".

Analysts expect the situation to only worsen on November 4 when sanctions kick in directly targeting countries that buy Iranian oil by blocking them from access to USA markets and financial institutions.

Washington reintroduced sanctions against Iran's currency trade, metals and auto sectors in August after US withdrawal from a multinational 2015 deal that lifted sanctions in return for limits on Iran's nuclear program.

It should be noted that the oil trade is controlled by the state.

Crude oil prices drifted lower on Monday, amid prospects of a fall in demand for crude due to slowing global economy.

That's an increase of 10 million bpd since the start of the decade and means that these three producers alone now meet a third of global crude demand.

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In the coming weeks, traders keep a close eye on US sanctions on Iranian crude exports. Previously private oil companies could buy oil only to export oil, officials said.

The government now intends to offer oil on the energy exchange once a week, according to Fars.

Last month, U.S. Secretary of Energy Rick Perry said that Iraq alone could add 300,000 bpd of oil to global supply if it allows Kurdish oil to reach worldwide markets.

The Iranian government has prepared plans to counter the impacts of returning United States sanctions by maintaining oil exports above one million barrels per day, Jahangiri was quoted as saying by Press TV, Xinhua news agency reported on Sunday.

The Trump administration has called on all buyers of Iranian oil to cut imports to zero but Iranian officials say that will not happen.

The three countries, as reported by media, already argued that there were not sufficient supplies worldwide to replace Iranian oil volumes.

Some 280,000 barrels of crude oil were traded on Sunday, the first day of offering crude oil for export on Iran Energy Exchange (IRENEX), just few days before new round of US sanctions on petroleum sector take effect, Shana reported.

U.S. Treasury Secretary Steven Mnuchin said earlier this month that it would be more hard for Iranian oil customers to get waivers from the sanctions than it was during the Obama administration, and the U.S. would issue waivers, if any, only to buyers that have significantly reduced Iranian purchases.

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