Iranian oil - 40 years of revolution, war, sanctions and bans

Iranian oil - 40 years of revolution, war, sanctions and bans

Iranian oil - 40 years of revolution, war, sanctions and bans

However, she added that "If the Trump administration wants to cut off Iran's revenue to the point where the Iranian government can not afford to fund military and terrorist activity overseas, it will have to keep up the pressure on Iran's customers; exemptions will need to be re-evaluated monthly, with accurate data on Iran's crude oil and condensates exports".

Iran produces almost 4 percent of the world's daily oil supply and over the last 30 years has exported on average two-thirds of that.

Yet, one thing is clear, and here analysts were right-Iran's top two single largest oil customers, China and India, will continue to import Iranian crude.

US light crude CLc1 was 25 cents down at $65.93.

S&P Global Platts reports Iranian crude shipments to Indian refiners hit 600,000 bpd in September before declining to 500,000 bpd in October, a level expected to be maintained this month as well.

Almost 40 years after the 1979 Islamic revolution saw the exit of Western oil companies from Iran, the Iranian oil sector faces yet another costly disruption after a series of interruptions from war, sanctions and diplomatic isolation.

That will offset the decline in Iranian exports that could tighten supply.

At the same time, imports from the United States had also risen significantly earlier this year, after President Trump announced the sanctions for the first time.

"We can not end oil imports from Iran at a time when alternatives are costly", the source told Reuters.

The executive went on to say that International Olympic Committee had reduced its imports of Iranian crude "slightly" beginning in October as Washington considers a waiver for India from the sanctions.

"Our goal remains to get to zero oil purchases from Iran as quickly as possible. The United States government now is in the middle of an internal process to consider significant reduction exemptions for individual countries".

Analysts believed that the supply increase has offset the negative impact and declines in Iranian shipments caused by new US sanctions on Iran to be effective on November 4.

OPEC crude production rose in October to the highest since 2016, while Russian Federation was said to raise output to a post-Soviet record. Stockpiles were expected to have risen about 4.1 million barrels in the week ended October 26, an extended Reuters poll showed on October 30. There are signs the impact will be mitigated, as some buyers win partial exemptions while other producers - particularly Saudi Arabia - pump more to fill the gap.

Lack of clarity is still dominant regarding both Iranian exports and potential USA waivers, but Iran's top two oil buyers-China and India-are not bringing their imports down to zero.

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