US says Iran has lost $10bn in oil revenue due to sanctions

Wed, 2019-03-13 17:33

HOUSTON: Iran has lost $10 billion in revenue since US sanctions
in November have removed about 1.5 million barrels per day (bpd) of
Iranian crude from global markets, a US State Department official
said on Wednesday.
Brian Hook, the State Department’s special representative on
Iran, said in remarks at the CERAWeek energy conference that due to
a global oil surplus — in part due to record US production —
the United States is accelerating its plan of bringing Iranian
crude exports to zero.
US sanctions on Iran and Venezuela, two of the largest oil
producers in the Organization of the Petroleum Exporting Countries,
and production cuts by OPEC and Russia have boosted global oil
prices to near four-month highs.
Iran reached an agreement with world powers in 2015 over its
nuclear program which led to the lifting of sanctions in 2016 but
US President Donald Trump pulled out of the deal in May last year
and reimposed restrictions in November.
Trump “has made it very clear that we need to have a campaign of
maximum economic pressure” on Iran, Hook said, “but he also
doesn’t want to shock oil markets, he wants to ensure a stable
and well-supplied oil market. That policy has not changed.”
The global oil market is looking for signs that Washington may
extend sanctions waivers for Iran’s key customers in early May.
The United States surprised the market in November last year by
allowing eight countries to keep importing Iranian oil — in part
causing Brent crude futures, the international benchmark, to fall
to near $50 a barrel in late December after surpassing $86 a barrel
in October.
The US Energy Information Administration (EIA) has projected that
world supply will exceed demand in 2019 by 440,000 bpd, Hook
“When you have a better supplied oil market it enables us to
accelerate our path to zero. But we also know that there are a lot
of variables that go into a well-supplied and stable oil market,”
said Hook, a senior policy adviser to US Secretary of State Mike
Washington sanctioned Venezuelan oil exports in January in an
effort to oust President Nicolas Maduro and a massive power outage
since last week halted crude exports from its primary port,
essentially crippling the South American country’s principal
“We are aware that our diplomatic and economic pressure, the
timing and the pace of that affects Venezuela’s oil industry,”
Hook said.
He said the United States is monitoring global supplies for impact
from sanctions. “I’ve met a few times with (Saudi Energy
Minister) Khalid Al-Falih over the last year when we knew we were
taking a lot of oil, we wanted to ensure that we’re doing this in
a responsible way,” he said.
Falih said on Sunday that OPEC’s production-curbing agreement
likely would last until at least June. OPEC and its allies agreed
late in 2018 to cut output by 1.2 million bpd.

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US ‘not looking to grant further Iran oil waivers’
Source: FS – All-News-Economy
US says Iran has lost bn in oil revenue due to sanctions