No proper alternative to Iran oil – Ex-OPEC governor

Oil&Gas Materials 10 August 2018 11:10 (UTC +04:00)

Baku, Azerbaijan, August 10

Mohammad-Ali Khatibi, Iran’s former governor to OPEC, downplayed Washington’s efforts to reduce Iran’s oil exports to zero by November, saying the world has no alternative but to buy Iranian crude.

Kuwait, the UAE and Russia are not able to produce more than 400 barrels per day, Khatibi said in an interview with the Eghtesad radio station, IRIB news agency reported on August 10.

He added, “The three countries could not act as a proper alternative to Iran’s crude”.

Noting that Iran is currently selling 2.8 million barrels of crude and condensates per day to the global market, the oil expert said, “The market is open to doubt whether the three countries could supply the market’s demand or not”.

That is why many key consuming countries are in talks with the US seeking exemption from the sanctions on Iran's oil, Khatibi said.

On June 27, a senior State Department official said the United States has told countries to cut all imports of Iranian oil from November and is unlikely to offer any exemptions.

The US reimposed stiff economic sanctions on Iran on Monday, ratcheting up pressure on the Islamic Republic despite statements of deep dismay from European allies, three months after President Donald Trump pulled the US out of the 2015 nuclear deal between Tehran and world powers.

A first set of reimposed US sanctions affect financial transactions that involve US dollars, Iran's automotive sector, the purchase of commercial planes and metals including gold.

A second batch of US sanctions targeting Iran's oil sector and central bank are to be reimposed in early November.