ID : N-3306 Date : 2018/11/03 - 13:27
(Persia Digest) – Former Iranian representative for OPEC believes that Saudi Arabia is unable to offset the lack of Iranian oil on the market, leading to a probable price rise to USD 100bp. This has led the US to accept Iranian oil as a market reality and grant sanctions relief to eight countries who need to purchase oil from Iran.
On the threshold of new US sanctions on Iran coming into effect on 4 November, the Secretary of State has announced that eight countries have been given temporary relief to buy oil from Iran; but they must find alternative sources in due course. The waivers have been given while the US is pressurizing the world to reduce its oil purchases from Iran to zero.
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Former Director of International Affairs at the National Iranian Oil Company (NIOC) and OPEC representative, Mohammad-Ali Khatibi, told Persia Digest (PD): “Alongside its efforts to reduce Iranian oil sales to zero, the US is also seeking to stabilize the price of oil. But American officials now realize that the two are mutually exclusive.”
He added: “The price of petrol in the US has reached its highest level of the past years amid congressional midterm elections and its leaders must keep prices down to satisfy public opinion. They have been forced to give sanctions relief to eight countries at the onset of sanctions against Iran to stop price rises. Prices are forecast to reach USD 100bp with the absence of Iranian oil on the market.”
Khatibi reiterated: “This is a setback for America whose target was unattainable in the first instance. It has had to accept market realities in practice.”
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The former OPEC representative for Iran commented on other countries replacing Iranian oil by saying: “The US was counting on Saudi promises to replace every barrel of Iranian oil with two barrels. But the Saudi Minister of Petroleum has said recently that they are unable to achieve this and even replacing one Iranian barrel of oil with one Saudi barrel is putting pressure on them. This inability led the US to review its policies and accept the presence of Iranian oil on the market as a reality.”
He continued by saying: “If Iranian oil has been irreplaceable by now, no miracles will take place later. Demand will not drop and supply will not appear out of nowhere. There has not been enough investment in the past years and the United States will have to renew this deadline.”
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