Oil seesaws on reported Iran sanction waivers, US-China trade hopes

Minnie Murray
November 2, 2018

The waivers are being granted for continued import cuts, so that oil prices do not shoot up, the official added.

That's symbolically important to the Trump administration because President Barack Obama's administration took three years to remove 1.2 million barrels from the market - and that was while acting in concert with the European Union and other nations before the worldwide effort yielded the 2015 deal.

The US will reportedly offer major concessions to Iran that could allow the Islamic Republic to ease the pressure from upcoming economic sanctions.

The administration has said it is considering waivers on a case-by-case basis.

His comments come just one day after the country's foreign minister said US sanctions will have "severe consequences".

Meanwhile, US crude oil production surged by 416,000 bpd to a record 11.346 million bpd in August, the US Energy Information Administration (EIA) said in a monthly report this week.

"We will continue to discuss our Iran policy with our counterparts around the world and the implications of our re-imposition of sanctions previously lifted or waivered under the JCPOA", he said. I can't go. We're talking.

"We're quite confident moving forward that the actions that are being taken are going to help us exert maximum pressure against the Iranian regime", deputy State Department spokesman Robert Palladino said at a briefing on Thursday.

Iranians shop in the capital Tehran’s grand bazar
Iranians shop in the capital Tehran’s grand bazar

"It's a virtual certainty that Western banks are not going to violate the escrow restrictions", said Mark Dubowitz, the chief executive of the Washington-based Foundation for Defense of Democracies who has advised Pompeo.

And in the United States, crude production is now well over 11 million bpd, putting the U.S.in a neck and neck race with Russian Federation for the title of top producer. "They will bear the brunt of this escalation, not the Iranian government".

Pompeo and Mnuchin both said the sanctions will have exceptions for humanitarian purchases.

"Iranian crude is not a significant item in our crude basket".

Iran has accused Mr Trump of waging "psychological warfare". "The people of Iran should know with certainty that the government has no fear of the new American threats".

"If you cross us, our allies or our partners, if you harm our citizens, if you continue to lie, cheat and deceive, there will be hell to pay". Under Obama, those cuts, measured every six months, amounted to about 18 percent, but the Trump administration has set a much higher bar for waivers.

The Trump administration on Friday announced the reimposition of all USA sanctions on Iran that had been lifted under the 2015 nuclear deal. Last year, average Chinese imports of Iranian oil were 602,500 bpd, Platts has estimated.

Iran is India's third-largest oil supplier after Iraq and Saudi Arabia. Iran used the funds to buy goods from India. These channels would get blocked from November. However, Essar-Nyara, sources said, has been buying some Iranian oil on the spot market.

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