Wednesday, 18 July, 2018

Could Saudi Oil Replace All The Barrels Lost From Iran Sanctions?

American oil producers may find a new friend in India as they brace for a trade war with China that could curb US shipments American oil producers may find a new friend in India as they brace for a trade war with China that could curb US shipments
Nellie Chapman | 11 July, 2018, 15:40

The figures were contained in a communication from the kingdom to the Organization of the Petroleum Exporting Countries ("Saudi Arabia raised oil output by around 500,000 bpd in June", Reuters, July 5).

On Friday, Oil prices fell due to surging United States output and falling demand in China amid worldwide tensions and a Saudi production increase.

"It's an insult to the people and national sovereignty of these countries and it also destabilises the market", he added.

US President Donald Trump on Wednesday again accused the Organisation of the Petroleum Exporting Countries (Opec) of driving gasoline prices higher and urged the oil producer group to do more. But if anything, Trump's bluntness is refreshing: if, as he suggests, the goal of the United States military - with a yearly total budget of a trillion dollars - is to protect OPEC members in exchange for "cheap oil", how cheap is that oil? This must be a two way street.

After India-US relations soured over India's oil imports from Iran, Iran has put India in a spot of bother now.

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Washington said in May it was walking away from an worldwide deal on Iran's nuclear programme, and said it would impose fresh sanctions on Iran's energy sector.

"There hasn't been a significant change in our production and exports so far, and in response to USA actions Iran will advance according to its plans and policies", Zanganeh said. Two other sources also said South Korea cancelled July loadings of crude and condensate cargoes from Iran as it was uncertain whether they can receive an exemption from US sanctions on Iran trade. Now after the USA pulled out from the Iran Nuclear Deal, India has been in a dilemma over India-Iran trade especially that of oil.

Tehran and Vienna extended the energy cooperation agreement which was signed between Iranian oil ministry and Austria's energy ministry, Shana reported on Thursday quoting Iranian Deputy Oil Minister for International Affairs and Trading Amir-Hossein Zamaninia.

Opec members agreed with Russian Federation and other oil-producing allies last month to raise output, despite Iran storming out of negotiations, with Saudi Arabia pledging a "measurable" supply boost but giving no specific numbers.

South Korea halted all Iranian oil shipments in July for the first time in six years amid USA pressure.

South Korean refiners have since curtailed their Iranian oil purchases and turned to alternative sources such as American and African crude due to expensive Middle East grades and uncertainty over trade with Iran.