It’s Difficult to remove Iranian oil from market – OPEC
It is difficult to eliminate Iranian oil from the global market, OPEC Secretary-General Mohammad Barkindo was quoted as saying by Iranian oil ministry’s news agency SHANA on Thursday.
“There is no need to repeat it. It is impossible to eliminate Iranian oil from the market,” Barkindo said in a visit to Tehran.
The U. S. has demanded that buyers of Iranian oil stop purchases or face sanctions.
In tightening sanctions on Iran, the Trump administration moved on Monday to isolate Tehran economically and undercut its power across the Middle East. But the clampdown has complicated relations with China at a particularly sensitive moment.
The decision to stop five of Iran’s biggest customers from buying its oil was an audacious strike at Tehran’s lifeline — one million barrels of oil exports daily, fully half of which go to China. The order was also aimed at India, Japan, South Korea and Turkey, all countries that trade robustly with the United States.
All are also partners with the United States on major security and diplomatic issues that do not involve Iran.
“We will no longer grant exemptions,” Secretary of State Mike Pompeo said in announcing that current sanctions waivers to the five nations would expire on May 2, clearing the way for American economic penalties against all companies or financial institutions that continue to take part in transactions linked to buying Iranian oil.
Meanwhile Iran says it will continue to export oil despite U.S. pressure aimed at reducing the nation’s crude oil shipments to zero, Iran President Hassan Rouhani said in a speech broadcast live on Iranian state TV on Tuesday.
“America’s decision that Iran’s oil exports must reach zero is a wrong and mistaken decision, and we won’t let this decision be executed and operational” Rouhani said.
“In future months, the Americans themselves will see that we will continue our oil exports,” he said.
If the United States is able to stop one method for Iran to export oil, then it will find other ways, Rouhani said.
Oil prices hit their highest since November last week after Washington said all waivers for sanctions-hit Iranian oil would end this week, pressuring importers to stop buying from Tehran and further tightening global supply.