Iran oil minister: U.S. waivers not enough, painful time ahead

Lloyd Doyle
November 9, 2018

A group of producers around the Organization of the Petroleum Exporting Countries (OPEC) as well as Russian Federation decided last June to relax output curbs in place since 2017, after pressure from US President Donald Trump to reduce oil prices and make up for supply losses from Iran.

As the USA sanctions snapped back into place, Washington issued what Pompeo called "temporary" exemptions for eight countries (China, India, Italy, Greece, Japan, South Korea, Taiwan, and Turkey).

When asked on the fate of Chabahar Port after the U.S. reimposed all its sanctions on Iran, the spokesperson said, "This exception relates to reconstruction assistance and economic development for Afghanistan".

Preventing oil prices from rising any further has been a relentless rise in USA crude output, which hit a record 11.6 million bpd in the week ending November 2, according to Energy Information Administration (EIA) data released on Wednesday.

JP Morgan said "the lack or difficulty in acquiring shipping insurance will help in reducing exports quickly as they did during last global sanctions".

For further details, see below. For Saudi Arabia - the world's biggest crude exporter - a reduction would mark the third time in recent years the kingdom has delivered a supply surge only to quickly reverse it.

Several Chinese sources with knowledge of the matter said China would be allowed to buy 360,000 bpd of Iranian crude during the exemption period of 180 days. Total volume traded was 35 percent above the 100-day average. It makes the United States the world's biggest producer of crude. The port project is simply too critical for India and can benefit Afghanistan immensely.

"Based on credible data, we now know that up to a dozen Iranian tankers have recently disabled their maritime transponders and have effectively gone dark", Hook said on Wednesday.

In May 2016, India, Iran and Afghanistan inked a pact which entailed establishment of Transit and Transport Corridor among the three countries using Chabahar Port as one of the regional hubs for sea transportation in Iran, besides multi-modal transport of goods and passengers across the three nations.

India is the second largest recepient of oil from Iran after China.

A close USA ally, South Korea had stopped buying crude from Iran ahead of the sanctions while still lobbying for exemptions. In turn, the U.S. would give a waiver to India to continue the import of Iranian oil in progressively lesser quantities for six months.

The won-denominated payments will go into escrow accounts handled by the Industrial Bank of Korea (IBK) and Woori Bank.

Over the past few months, OPEC has ratcheted up production amid calls from U.S. President Donald Trump to offset declines in Iranian shipments.

Japan's trade minister, Hiroshige Seko, said on Tuesday that Japanese buyers were expected to resume imports from the Islamic Republic again soon.

Other reports by Iphone Fresh

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