• 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
  • 7 hours Science: Only correct if it fits the popular narrative
  • 3 hours Crazy Stories From Round The World
  • 2 hours What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 24 hours EU has already lost the Trump vs. EU Trade War
  • 17 hours China's Renewables Boom Hits the Wall
  • 9 hours Do The World's Energy Policies Make Sense?
  • 2 days ''Err ... but Trump ...?'' *sniff
  • 18 hours Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 11 hours Impeachment Nonsense
  • 2 days Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 2 days Tesla Launches Faster Third Generation Supercharger
  • 23 hours Water, Trump, and Israel’s National Security
  • 2 days Passerby doused with flammable liquid and set on fire by peaceful protesters
  • 2 hours Who writes this stuff? "Crude Prices Swing Between Gains, Losses"

Breaking News:

Russia Plans To Boost Crude Oil Exports

Alt Text

In Pursuit Of The Perfect Fuel

Dark matter is arguably the…

Alt Text

The $75 Billion Indicator That Might Reveal Aramco’s True Value

Saudi Aramco’s much-anticipated initial public…

Alt Text

Putin Determined To Strengthen Ties With OPEC

Putin, talking at the BRICS…

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

Oil Climbs Higher As U.S. Looks To End Iran Sanction Waivers

The U.S. administration is preparing to announce an end to sanction waivers for countries importing oil from Iran, Reuters reports, citing a source from Washington who wished to remain unnamed.

The report comes on the heels of another one, by the Washington Post, which also quoted a Washington official as saying, "The goal of the policy is to drive up the costs of Iran's malign behavior and more strongly address the broad range of threats to peace and security their regime presents."

Oil prices are already up 3 percent since the Washington Post report broke, and are expected to continue climbing until Washington confirms or denies the reports. Earlier updates on the topic from this month had it that Washington will seek to achieve this goal gradually to avoid a shock to the market that would cause a jump in prices.

When the current waivers expire, sources told Reuters, the next intermediate goal will be to cut Iran’s exports to below 1 million bpd, or by 20 percent from the estimated May rate. Yet the ultimate goal of bringing Iran’s oil exports to zero has not changed in any of the official updates.

Earlier this month, the U.S. special envoy for Iran, Brian Hook, told Reuters that three of Iran’s biggest oil importers had stopped buying crude in April ahead of the sanction waiver expiration, although he did not name any of the three. He noted this as part of the goal accomplished.

If the Trump administration does confirm the end of waivers, this would have wide reverberations in two main directions: the US-China trade talks and the OPEC+ production cuts.

The former would likely become harder in case of a waiver suspension, as TankerTrackers.com’s Samir Madani noted in a tweet. The OPEC+ deal, for its part, will likely end in June like Russia wants, since prices are bound to increase substantially after such an announcement. The sanction waiver would remove more than 700,000 bpd from global markets.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Mamdouh Salameh on April 22 2019 said:
    A renewal or non-renewal of US sanction waivers will hardly impact oil prices or global supplies. However, a non-renewal of the waivers will expose the failure of the sanctions to the world. That is why the Trump administration will bite the bullet and renew the waivers.

    Iran’s oil exports estimated at 2.125 mbd have been going to China (31%), India (28%), the EU (20%) and Turkey (7%), a total of 86%. The remaining 14 % has been going to Japan and South Korea. The above countries with the exception of South Korea and Japan don’t recognize US sanction on Iran and would continue to buy Iranian crude with or without sanction waivers.

    With waivers, South Korea and Japan may have to reduce their purchases by 20% or 60,000 barrels a day (b/d). Without waivers, they may have to stop importing some 300,000 b/d. Either way, the drop in Iranian oil exports ranging from 60,000-300,000 b/d will be offset by increased purchases from China, India and Turkey.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




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