Saudi readies to boost supplies over Iran oil sanctions

Daniel Fowler
November 4, 2018

India kept importing oil from Iran knowing it well that it will be saved from sanctions on being strategic partner of the US.

Turkey has been told that it will receive a waiver from the USA oil sanctions against Iran, Turkish Energy and Natural Resources Minister Fatih Donmez said Friday.

The waiver is conditional on Iraq not paying Iran for the imports in USA dollars, said the officials, including a member of Iraq's ministerial committee that oversees energy activities.

As a major buyer of Iranian crude, India has been negotiations with the United States for exemption from secondary impact so the sanctions as it reduces its orders.

A Chinese official told Reuters that discussions with the USA government were ongoing and that a result was expected over the next couple of days.

Another country that has been seeking a sanctions waiver is Turkey, which takes significant volumes via pipeline from neighboring Iran.

Iran's top leader said on Saturday U.S. President Donald Trump's policies face opposition across the world as Washington prepared to reimpose sanctions on Iran's vital oil-exporting and financial sectors, state television reported.

Japan and South Korea temporarily stopped oil imports from Iran in September but Indian Oil and Mangalore Refinery and Petrochemicals continued purchases though the overall volume dropped slightly from around 10 million barrels in October to nine million barrels for November.

Anas al-Hajji, a Houston-based oil expert, said the fall in Iranian exports was tough to assess but he expected "less than what most analysts are talking about". "These concessions are critical to ensuring that we increase our maximum pressure campaign and accelerate towards zero", Pompeo said.

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US Secretary of State Mike Pompeo said on Tuesday that Washington stood behind Denmark, a North Atlantic Treaty Organisation ally. ASMLA is a separatist group that advocates an Arab state in a southwestern Iranian province.

Trump was, of course, referring to reimposing sanctions against Iran that had been lifted as part of an Obama-era nuclear agreement.

In order to allow companies to trade with Iran and not face stiff U.S. penalties, the European Union plans to implement a payment mechanism - a Special Purpose Vehicle (SPV) - that will enable these companies to avoid the United States financial system.

During the last sanctions period, China funnelled nearly all its Iranian transactions through the Bank of Kunlun, controlled by Chinese state energy group CNPC, which was sanctioned by the USA in 2012 but shielded the rest of the sector from penalties.

Iran's annual rally to mark the storming of the United States embassy and hostage-taking of 1979 had particular significance on Sunday (Nov 4) on the eve of renewed sanctions by Washington.

Even if Iran can continue to sneak oil out of its ports, it will find it hard to get the cash into its accounts.

US President Donald Trump is about to reimpose tough sanctions on Iran's oil trader and banking system, a effect of his withdrawal from the 2015 agreement to curb Tehran's nuclear program.

Further details of the US's decision on Iran sanctions will be released on November 5.

Money from sales to the exempted countries would be kept in accounts outside Iran, and could only be spent on humanitarian supplies or approved goods.

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