• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 3 hours Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 1 hour Tesla Launches Faster Third Generation Supercharger
  • 22 mins EU has already lost the Trump vs. EU Trade War
  • 2 hours Passerby doused with flammable liquid and set on fire by peaceful protesters
  • 1 hour Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
  • 2 hours ''Err ... but Trump ...?'' #yawn
  • 52 mins China's Renewables Boom Hits the Wall
  • 21 hours Climate Change Consensus Shifts in Wind, But Gas Is Still the Right Move
  • 1 day Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 3 hours Crazy Stories From Round The World
  • 1 day Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 2 hours Haaretz article series _ Saudi Arabia: A Kingdom in Turmoil | Part 1 - Oil Empire
Alt Text

Chinese Oil Imports Soar To Record High

China’s crude oil imports reached…

Alt Text

The Uncertain Fate Of U.S. Shale In 2020

The fate of U.S. shale…

Alt Text

How Much Oil Does The U.S. Really Own?

The scope of global oil…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Will The U.S. Compromise On Iran Oil Sanctions?

Some of the United States’ closest allies are scrambling to find a way around the latest sanctions of the Trump Administration against Tehran, and Washington may have to revise its goal of reducing Iranian oil exports to zero.

Bloomberg recently reported, citing unnamed sources in the know, that Japan, for one, might have to stop loading Iranian crude in September unless it manages to score a waiver with the State Department.

South Korea earlier denied reports that it will stop buying Iranian crude from July, but now there are more reports, saying that the country, one of the world’s top oil importers, is having problems with tanker insurance as some of the largest maritime insurers refuse to touch Iranian vessels under the shadow of sanctions.

India is yet another case in point. The world’s fastest-growing economy has been importing Iranian crude at an average daily rate of 588,000 bpd since the start of the year. This makes it Iran’s second-largest client after China, and the nation that is struggling most as the sanctions start date approaches.

The problem is not exclusively related to commodities, however. Iran’s oil clients have also been actively working to improve bilateral relations after the inking of the nuclear deal. “Japanese companies were beginning to look toward Iran as an attractive investment destination,” a senior economist from Japan Research Institute Ltd. told the Japan Times recently.

Japan is by no means the only oil-hungry country looking for new investment opportunities in Iran. India has also been planning substantial investments in Iran, and just yesterday Iran criticized New Delhi for failing to make good on a promise to finance the expansion of a strategic port. The deputy ambassador of Tehran in India warned the country that Iran will strip it of its “special privileges” if it stops buying Iranian crude. Related: Spare Capacity: The Biggest Mystery In Oil Markets

For Japan, South Korea, and India the problem of oil supplies is actually one of balancing interests. “We are in a knotty situation as we have to listen to the U.S., but at the same time Iran is an important supplier of crude and condensate,” a research fellow from the Korea Energy Economics Institute told Bloomberg. “It’s the Trump administration that we are dealing with, and that unpredictability is stoking concern among refiners and petrochemical companies in Asia, making them voluntarily cut their shipments from Iran before the deadline.”

It seems some of this frustration has gotten through to Washington. Secretary of State Mike Pompeo yesterday said that “There will be a handful of countries that come to the United States and ask for relief from that. We’ll consider it.”

Pompeo did not name any countries, but the statement is significant enough: perhaps Washington is ready to accept something milder than an export reduction to zero to maintain its relationships with key Asian allies. Or maybe it has become evident even for the Trump administration that the insistence on an oil export reduction to zero has only served to stoke the oil price rally at a time when Republicans are preparing for midterm elections in November and prices at the pump are in the spotlight for voters.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • GWOD on July 11 2018 said:
    Would our president lie for reaction? Price manipulation possible for public office? Is this about crowd size?
    This guy hurts people at an alarming rate. Our crowd size is getting bigger every day.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play