Deadline For Iranian Oil Waivers

Fredrick Soto
May 5, 2019

Oil tankers pass through the Strait of Hormuz, December 21, 2018.

The United States reimposed sanctions on Iran in November after pulling out of a 2015 nuclear accord between Tehran and six world powers.

There has been market chatter that despite the "maximum pressure" campaign against Iran, the USA could extend some sanction waivers as the Trump Administration would be seeking not to run up oil (and gasoline) prices too high-an issue with every American president, and a key issue for the current president.

This came after US Secretary of State Mike Pompeo recalled that Washington would not renew any exemptions from US sanctions on buyers of Iranian oil, and that he had received a commitment from Saudi Arabia and the UAE ensuring that oil supplies will remain stable.

Azour said that the projection preceded the latest elimination of waivers, meaning the situation for the Iranian economy could get even worse. The characteristics of their refineries are suitable for Iranian oil. "So we have to increase our hard currency income and cut our currency expenditures", Rouhani said.

In response to Washington's hostility, Iran could retaliate by making it harder for Washington to reach a peace deal with the Taliban in Afghanistan, Slavin said, adding that Tehran could also put pressure on Iraq to expel US troops and make the situation in Yemen even worse.

OPEC logo is pictured ahead of an informal meeting between members of the Organization of the Petroleum Exporting Countries (OPEC).

ROSENBERG: However, I don't think it's possible that everyone who continues to import Iranian oil now will be able to go all the way to zero.

In an April 23 tweet, Indian Oil Minister Dharmendra Pradhan said New Delhi has a plan to maintain an "adequate" supply of crude to Indian refineries, adding: "There will be additional supplies from other major oil-producing countries". The country intends to fulfill any supply gap in coordination and discussion with other OPEC members. The requests are for supplies on top of what the refiners are due as part of term contracts with state-run Saudi Aramco, they said.

It is unclear as yet how the main importers of Iranian crude will react.

"No responsible Chinese company with any worldwide exposure will have anything to do with Iran oil unless they are specifically told by the Chinese government to do so", said Tilak Doshi of oil and gas consultancy Muse, Stancil & Co in Singapore.

Kayrros, a company that tracks oil flows, put Iranian crude exports in March at 1.40 million to 1.65 million bpd.

"The kingdom received an official request for help, through its permanent delegation to the United Nations in NY, from the Iranian charge d'affaires in the Iranian delegation", SPA quoted a coast guard spokesman as saying.

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