• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 24 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours Reality catching up with EV forecasts
  • 5 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 5 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 2 hours 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 11 days The Federal Reserve and Money...Aspects which are not widely known
  • 15 days US Oil Independence is a myth and will always be a myth
  • 15 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
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

Trump Threatens Iran’s Oil Clients

President Donald Trump said the United States “will take care” of countries that continue to buy Iranian oil after the second round of U.S. sanctions kick in on November 4 this year. Trump made the comment speaking to reporters in Washington, days after India said it will buy 9 million barrels of crude from Iran and Reuters reported a VLCC carrying Iranian crude had offloaded it in bonded storage at the Chinese port of Dalian.

The Economic Times reports that Indian Petroleum Minister Dharmendra Pradhan had told media that India had its own energy needs to satisfy, which reaffirms the message sent by New Delhi to Washington earlier this year: although the two may be allies, they sometimes have different priorities. India is facing popular unrest because of rising inflation, and one of its causes is more expensive oil.

The country is Iran’s second-biggest crude oil buyer, with Iranian crude accounting for almost a tenth of India’s total oil imports in financial 2017/2018.

ADVERTISEMENT

China, for its part, has made it clear on numerous occasions it has no intention of cutting Iranian imports of crude oil. Despite media reports that it has been taking less Iranian crude, it seems this was a temporary situation as the trade row between Beijing and Washington deepens.

Related: Trump Sides With Farmers In Battle Against Refiners

ADVERTISEMENT

Meanwhile, Saudi Arabia has been assuring the market that it can replace all lost Iranian supply by boosting production to a record-high 10.7 million bpd—not even a million bpd more than what The Kingdom pumped prior to the OPEC+ agreement in November 2016. To compare, Iran’s exports as of April, the month before Trump pulled the United States out of the nuclear deal, were more than 2.5 million bpd.

Traders remain tangled in uncertainty about the actual loss of Iranian supply as Iranian tankers conceal their routes by turning off the transponders used to track vessel movement.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



Leave a comment
  • Mamdouh G Salameh on October 11 2018 said:
    The overwhelming majority of the nations of the world with the possible exception of Saudi Arabia and Israel are against US sanctions on Iran as unfair since Iran has not violated any of the clauses of the nuclear deal. Is President Trump going to impose sanctions on the world? Were he to do that, he will isolate his country completely from the world.

    May be President Trump was irritated by India’s announcement that it will buy 9 million barrels of crude from Iran in November right after US sanctions have been implemented and also by Reuters' report that a VLCC carrying Iranian crude had offloaded it in bonded storage at the Chinese port of Dalian.

    India with the world’s third biggest economy based on purchasing power parity (PPP) and a nuclear power in its own right will look after its own interests. India is affirming the message that it doesn’t recognize any sanctions except UN sanctions and it will therefore ignore US sanctions and continue to buy Iranian crude.

    China, for its part, has made it clear on numerous occasions it has no intention of cutting Iranian imports of crude oil. Moreover, when it comes to US sanctions against Iran, China has the upper hand. It could singlehandedly nullify US sanctions on Iran by importing the total oil exports of Iran amounting to 2.125 million barrels a day (mbd) and paying for them in petro-yuan. Furthermore, the petro-yuan has made the US sanctions useless and has provided a way by which Iran could bypass the petrodollar and the sanctions altogether.

    Threats by President Trump to buyers of Iranian crude are a manifestation of deeply rooted fear of the US losing hegemonic status as the “only indispensable superpower’ as can be witnessed by his escalation of his trade war with China, sanctions on Russia and threat of sanctions against Germany for going ahead with the Nord Stream 2.

    The Trump administration is deluding itself when it says that it expects Iranian oil buyers to bring their purchases down to zero or sanctions will be imposed on them.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London
  • Mike on October 11 2018 said:
    Does this buffoon *really* think he gets to dictate what the rest of the world can and cannot do? The rest of the world has been giving him the giant middle finger one country at a time, everyone he throws one of his juvenile and emotional knee jerk tantrums. The rest of the world is laughing at us as a country and mocking us behind our backs thanks to our emperor with no clothes. All one can say at this point. is November is just around the corner.
  • Andre on October 12 2018 said:
    Who even pays attention to the US anymore.....its a laughing stock to the rest of the world.

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News