Iran threat to pull out oil cushion

Jul 12, 2018, 20:46
Iran threat to pull out oil cushion

After Iraq and Saudi Arabia, Iran is India's third-largest oil supplier.

U.S. President Donald Trump's decision to walk out of the Joint Comprehensive Plan of Action in May means some unilateral sanctions on Iran will be reinstated by August.

"Come November 4th, there will be a U.S. sanction that prevents crude oil from passing from Iran to other countries", said Mr Pompeo in an interview to Sky News Arabia when asked how Washington would deal with the countries that continued to buy oil from Iran after Nov 4. European powers have vowed to uphold the agreement and the Turkish government is among those saying it won't be influenced by unilateral US sanctions on Iran.

Indian refiners will likely gain more clarity on how much the United States would like them to cut after a meeting with USA officials scheduled for July 16 to 17, said an official with a state-run refiner who declined to be named due to the sensitivity of the matter.

The embassy said Iran will do its best to ensure security of oil supply to India by offering various flexible measures which facilitate bilateral trade, particularly Indian exports to Iran.

The US has told India and other countries to cut oil imports from Iran to "zero" by November 4 or face sanctions.

The Deputy Ambassador responding to USA compulsions on cutting importing Iranian oil to countries across the globe, he said that Tehran had been India's reliable partner and will continue to be so, but if Indian chooses to cut importing Iranian oil then it will as well lose all the special privileges provided by Iran.

Speaking to Press TV, author and political scientist Kaveh Afrasiabi, however, played down Pompeo's drive, saying his efforts will likely fail to produce any result.

In May, President Donald Trump announced that the United States was withdrawing from the Iran nuclear deal signed by the Obama administration in 2015, under which Tehran had agreed to limit its sensitive nuclear activities and allow global inspectors in return for lifting of crippling economic sanctions. "We have seen this malign behavior in Europe", Pompeo said Tuesday in an interview with Sky News Arabia during a short trip to the United Arab Emirates.

HPCL-Mittal Energy Ltd continued to skip Iran oil imports for a second month in June, the data showed. Three others are headed for undisclosed ports on India's west coast from the US Gulf Coast.

June's 228,000 bpd of US exports to India are more than double the previous export record of 98,000 bpd last September, according to US Energy Information Administration data. It is carrying 1.93 million barrels of USA crude, Reuters tracking data shows.

But the National Iranian Oil Company (NIOC) reported this week that Iranian oil exports may decrease to 500,000 bpd when the sanctions kick in. "They really have started to make the shift", said Olivier Jakob, managing director of energy consultancy PetroMatrix.