Sanctions to down Iran's oil exports by 1.5 million barrels, says ex-oil official
Tehran, Iran, Oct.8
Reza Modir, Iran Oil Ministry's former deputy director for OPEC affairs told Trend that US pressure and sanctions would cut down the Islamic Republic's oil exports by maximum 1.5 million barrels.
The U.S. sanctions will target Iran’s crude oil exports from Nov. 4, and Washington has been putting pressure on governments and companies worldwide to cut Iran's exports to zero.
"It seems to me that cut Iran`s export to zero is not relevant because if even Iran would be able to export 100,000 barrels, it`s not zero yet. But the US pressure and efforts will be able to reduce exports to a maximum of 1.5 million barrels per day, and Iran will, under all circumstances, export about one million barrels”, Modir said.
He also commented on the increase of oil prices in case Iran's exports are cut by some 1.5 mbpd.
"In the past, such increases of prices were out of the hands of the consumers. In the current situation, it is in their hands," he said.
Most experts believe U.S. sanctions on Iran's energy industry, when they come into effect in November, could potentially drive oil prices above $100 per barrel.
If sanctions were to reduce Iran's exports by 1.5 million barrels, Modir said Saudi Arabia, the United Arab Emirates, Kuwait, and non-OPEC countries could fill in for about a million, and so even with lack of some 500,000 barrels of Iran's oil and fear of the market, the price could be between $80-90 a barrel.