Economy

Threats from US put new pressure on Iranian oil importers

Threats from US put new pressure on Iranian oil importers”

So, can we expect a draw of around -9 million from EIA?

They could of course ease up on the sanctions implementation timescale, thus easing the pressure on prices, or open up the Strategic Petroleum Reserve, and increase supply in order to keep a lid on prices.

Antoine Halff, a researcher at Columbia University and former chief oil analyst for the International Energy Agency, said it's not unusual for the USA government to seek cooperation from other importers of Iranian oil - President Barack Obama's administration did it during a previous round of sanctions. Crude oil companies and many countries will not want to face the possibility of US wrath.

"We're going to isolate streams of Iranian funding and looking to highlight the totality of Iran's malign behavior across the region", the official, speaking on condition of anonymity, told reporters. Exports have fallen to an average of 2.2 million barrels a day this month, compared with 2.7 million barrels a day in May, according to data from London-based consulting firm Vortexa.

The source was referring to the U.S. State Department confirmation Tuesday that Iranian oil buyers should expect no waivers to its sanctions and halt business by November 4. South Korea is also cutting its imports from Iran: in May, these fell to a two-year low of less than 180,000 bpd.

When Washington said this week it was asking customers in Asia and Europe to reduce Iranian oil purchases to zero from November, sources familiar with Saudi oil thinking briefed the market about an imminent rise in Saudi output to a record.

Even though the OPEC decision a week earlier was kept deliberately vague last week for both Iran and Saudi to compromise, Falih had promised to only gradually increase its supply by a few "hundreds of thousands of barrels".

Iran is India's third-largest oil supplier, after Iraq and Saudi Arabia. In a special address on Thursday afternoon, Haley said, "The world is united against Iran having nuclear weapons because we all have good reason to worry about what Iran would do with those weapons". Economic concerns in the country have been aggravated by the Trump Administration's exit from the 2015 nuclear accord.

API forecast a draw of 2.5 million barrels for the week ending June 22. The outage is expected to last at least through July, according to operator Suncot.

"This big claim (of cutting Iran oil supply) is not feasible".

The options to find replacements to Iranian oil have widened after OPEC agreed with Russian Federation and other oil-producing allies last week to raise output from July by about 1 million bpd, with Saudi Arabia pledging a "measurable" supply boost but giving no specific numbers.



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