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"Iran will keep delivering oil to its customers despite US decision"

Oil&Gas Materials 23 April 2019 11:19 (UTC +04:00)

Baku, Azerbaijan, April 23

By Leman Zeynalova – Trend:

Iran will keep delivering oil to its customers despite the decision of the US not to extend sanction waivers for oil imports, Sam Barden, Director of SBI Markets, an international commodity trading and advisory company, told Trend.

He pointed out that not renewing the sanctions waivers will no doubt put supply pressure on the oil market and prices will increase. “However, the US ability to enforce these waivers in my view is pretty low.”

“Is the US going to sanction such countries as China, South Korea, Japan, India, Turkey, all at the same time for continuing to buy Iranian oil? While these countries will remain diplomatic and polite, they are unlikely sit back and let the US drive up the cost of oil. Turkey has already rejected the proposal, as others will likely also do,” the expert believes.

Barden noted that prices will go higher in the short term on speculators, but the reality is Iran will keep delivering and their customers will keep buying. “Asian economic growth depends on Iranian oil.”

The US State Department said that the country won’t issue additional reduction exceptions to existing importers of Iranian oil.

“United States will not issue any additional Significant Reduction Exceptions to existing importers of Iranian oil. The Trump Administration has taken Iran’s oil exports to historic lows, and we are dramatically accelerating our pressure campaign in a calibrated way that meets our national security objectives while maintaining well supplied global oil markets. We stand by our allies and partners as they transition away from Iranian crude to other alternatives. We have had extensive and productive discussions with Saudi Arabia, the United Arab Emirates, and other major producers to ease this transition and ensure sufficient supply. This, in addition to increasing U.S. production, underscores our confidence that energy markets will remain well supplied,” reads the message.

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Follow the author on Twitter: @Lyaman_Zeyn

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