Reuters: US Aims to Reduce Iran Oil Exports Below One Million Barrels Per Day
Reuters news agency, citing sources, reports that the Donald Trump administration intends to reduce Iran’s total oil exports to below one million barrels per day starting in May, with a 20 percent reduction from current levels.
One source familiar with recent developments told Reuters: “Currently, the [government’s] goal is to reduce Iran’s total oil exports to below one million barrels per day.”
Sources told Reuters in a report dated March 13 that the Donald Trump administration is aware of the consequences of a complete halt of Iran’s oil exports on global markets and that “bringing it to zero may be difficult.”
Just one day before the release of this report, Mike Pompeo, the U.S. Secretary of State, told a gathering of major global oil company executives and several oil ministers that America remains committed to a complete halt of Iran’s oil exports.
Brian Hook, the U.S. Special Representative for Iran Affairs, also said at the same conference that global oil surplus helps the United States accelerate its plan to bring Iran’s oil exports to zero.
Officials of the Islamic Republic say cutting Iran’s oil exports is not feasible. Iran’s Vice President said Washington’s plans in this regard have “failed.” Several senior military officials in Iran have also reiterated threats to “close the Strait of Hormuz”; something that, however, appears unlikely from the perspective of some experts and analysts.
One source told Reuters that an oil price of $65 per barrel is “the last line Donald Trump can tolerate”; meaning that the U.S. President is not willing to accept prices rising above $65 per barrel. However, Brent oil had reached above $67 on the day Reuters released its report.
At the same time, Venezuela’s oil production, a country that ranks first in terms of oil resources globally, has also affected rising oil prices.
Donald Trump, the U.S. President, who has always been critical of the negotiations and the subsequent nuclear agreement between Iran and six world powers during Barack Obama’s presidency, has withdrawn from this agreement. The United States has reinstated all previous sanctions on two occasions and added new entities and names to the sanctions list.
Beyond stating its intention to bring Iran’s oil exports “to zero,” the U.S. government says it has implemented a “maximum pressure” campaign to force Iran to “change its behavior” by imposing “the most severe sanctions in history.” The U.S. Secretary of State has set 12 conditions, mostly related to Iran’s activities and measures in the region, development of ballistic missiles, and other issues. U.S. officials say they do not intend to harm the Iranian people.
The Islamic Republic says the United States’ withdrawal from the “JCPOA,” an agreement endorsed by the UN Security Council, is “illegal.” Tehran has rejected accusations of meddling in regional affairs and says its missile program is “defensive” and it will not abandon it. Of course, officials of the Islamic Republic have repeatedly threatened Israel with “annihilation”; an issue that has faced criticism from various countries and the United Nations.
Sources told Reuters that the U.S. government may refrain from extending certain exemptions for countries that have not taken advantage of Iran oil exemptions.
Greece, Italy, Taiwan, China, India, Turkey, South Korea, and Japan are among the countries that have been granted exemptions. India, China, and Turkey are among the most important buyers of Iranian oil.
Amos Hochstein, an official responsible for Iran sanctions during Barack Obama’s presidency, told Reuters that China and India alone buy between 800,000 to 900,000 barrels of oil per day from Iran.
Hochstein says, looking at the market, “it seems logical that Iran’s oil exports would remain between 800,000 to 1.1 million barrels per day.”
Source: Radio Farda
