Tehran, Iran, Nov.11
Trend:
Many refineries can’t do without Iranian oil, member of Economic faculty of Allameh Tabataba'i University Mehdi Taghavi told Trend referring to the impact of US sanctions in comparison to previous sanctions against the country in 2012.
"Now the main issue is that if Iran fails to sell its oil, which currently reached about 2.5 million barrels of oil a day, the supply will drop,” he said.
Oil prices in October rallied above $85 per barrel on fears of a steep decline in Iranian exports.
“If this amount of oil does not enter the market, the oil price will rise and the world economy will face a rise in costs, thus, no country is willing to comply with the US sanctions, such as India and China, which keep importing oil from Iran," said Taghavi.
"Some refineries are deeply dependent on Iran's crude oil and cannot replace it at all,” he said referring to ability of these countries which are willing to import oil from Iran despite the financial problems.
"Iran's crude exports could fall to much less than 2.5 million bpd but Iran certainly will sell its oil."
The United States snapped sanctions back in place on November 5 to choke Iran’s oil and shipping industries, while temporarily allowing top customers such as China and India to keep buying crude from the Islamic Republic.
India imported 220.4 million tonnes (mt) crude in the last fiscal, of which Iran’s share was almost a tenth at 9.4 percent. India has been arguing that the technical configuration of many of its refineries make it heavily dependent on Iran.