US to cut number but extend waivers from Iranian oil imports sanctions: Report
Oil market analysts said that Reducing the number of waivers will limit oil exports from Iran, the fourth-largest producer in OPEC, but the US should forget its goal of bringing Iranian oil exports to zero.
Iran Press/America: Experts and analysts in oil market said that the US is likely to extend waivers from sanctions on Iranian oil imports in May but will reduce the number of countries receiving them to placate top buyers China and India and to decrease the possibility of higher oil prices.
China, India, Japan, South Korea and Turkey are likely to be given waivers after they expire in May that could cap Iran’s crude oil exports at about 1.1 million barrels per day, U.S.-based analysts at Eurasia Group said on Thursday, Reuters reported.
“Other geopolitical priorities will moderate the administration’s desire to halt Iranian exports, particularly with Iran’s top two purchasers, China and India,” the analysts said.
China and India continued to import Iranian oil from November, Turkey resumed imports in December and South Korea is expected to receive condensate from Iran this month after a four-month halt for banking process.
According to experts the US can't completely remove Iran oil exports from the market because the loss of Iran supply would result in a politically unpalatable increase in oil prices.
On May 2018, the US President Donald Trump withdrew from 2015 multilateral nuclear agreement, Joint Comprehensive Plan of Action (JCPOA), and re-imposed the sanctions that had been lifted under the accord.
Washington reinstated a series of unilateral sanctions against Iran in early August and re-impose a second batch in November which as Trump said the goal was bring Iranian oil export to zero.
But for neutralizing oil market shock and stopping rising oil prices, Washington grant waivers to eight Iranian oil buyers when the sanctions on oil imports started in November. exceptions granted for up to 180 days.