• 4 minutes USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 10 minutes IT IS FINISHED. OPEC Victorious
  • 16 minutes GOODBYE FOREIGN OIL DEPENDENCE!!
  • 2 mins Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 18 hours The Great Climate Change Swindle
  • 4 hours End of EV Subsidies?
  • 8 hours Price Decline in Chinese Solar Panels
  • 5 hours Maersk's COO statment.
  • 1 hour Trump accuses Google Of Hiding 'Fair Media' Coverage of him
  • 1 day S. Australia showing the way
  • 19 hours China Builds LNG Icebreaker
  • 1 day More OPEC Members May Leave
  • 22 hours Exxon buys green power.
  • 4 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 2 days Not only GM: Morgan Stanley Predicts Ford to Cut 25,000 Jobs in Overhaul
  • 1 day Feudalism: The Most Resilient System?
Alt Text

Former Venezuelan General Takes Helm Of OPEC

Ex-general Manuel Quevedo, Venezuela’s current…

Alt Text

Geopolitical Stakes Are Huge On This Tiny Island

From both a geopolitical and…

Joao Peixe

Joao Peixe

Joao is a writer for Oilprice.com

More Info

Trending Discussions

Iran, Russia Ruffle US Feathers with Oil Swap Deal

Reports are emerging that Iran and Russia are in talks about a potential $1.5 billion oil-for-goods swap that could boost Iranian oil exports, prompting harsh responses from Washington, which says such a deal could trigger new US sanctions.

So far, talks are progressing to the point that Russia could purchase up to 500,000 barrels a day of Iranian oil in exchange for Russian equipment and goods, according to Reuters.

"We are concerned about these reports and Secretary (of State John) Kerry directly expressed this concern with (Russian) Foreign Minister (Sergei) Lavrov…  If the reports are true, such a deal would raise serious concerns as it would be inconsistent with the terms of the P5+1 agreement with Iran and could potentially trigger US sanctions," Caitlin Hayden, spokeswoman for the White House National Security Council, told Reuters.

Related article: Syria Signs First-Ever Offshore Oil Deal, with Russia

Russian purchases of 500,000 bpd of Iranian crude would lift Iran's oil exports by 50% and infuse the struggling economy with some $1.5 billion a month, some sources say.

Since sanctions were slapped on Iran in July 2012, exports have fallen by half and Iran is losing up to $5 billion per moth is revenues.

In the meantime, a nuclear agreement reached in November with Iran and world powers is in the process of being finalized, and the news of the potential Russian-Iranian oil swap deal plays to the hands of Iran hawks in Washington who are keen to seen the November agreement collapse.

The November agreement is a six-month deal to lift some trade sanctions if Tehran curtailed its nuclear program. Technical talks on the agreement began last week.

Under the terms of the tentative November nuclear agreement, Iran will be allowed to export only 1 million barrels of oil per day.

In mid-December, Iranian oil officials indicated that they hoped to resume previous production and export levels and would hold talks with international companies to that end.

Related article: Central Asia Energy Advisor

This announcement sparked an immediate reaction from US Congress, which has threatened oil companies with “severe financial penalties” if they resume business with Iran “prematurely” following the six-month agreement reached in Geneva.

There are plenty of figures in Congress—Republican and Democratic alike—who are opposed to the deal. The key “Iran hawk” in US Congress, South Carolina Republican Lindsey Graham, has described the deal as “so far away from what the end game should look like”, which should be to “stop enrichment”.

The opposition in this case believes any talk between Tehran and Western oil companies is premature because they are convinced that we won’t see a comprehensive resolution after the six-month period, and that sanctions will be laid on stronger than ever before.

By. Joao Peixe of Oilprice.com




Back to homepage

Trending Discussions


Leave a comment
  • Iran News on January 20 2014 said:
    The NCRI is comprised of 25 committees that act as shadow ministries. The committees are responsible for expert research and planning for future Iran. For more information visit http://www.ncr-iran.org/en ...

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
-->