United States leaving of JCPOA won't affect Iran's oil, gas exports, revenue: Zanganeh

  • United States leaving of JCPOA won't affect Iran's oil, gas exports, revenue: Zanganeh

United States leaving of JCPOA won't affect Iran's oil, gas exports, revenue: Zanganeh

Trump's decision about the Iran deal isn't the only factor driving up oil and gasoline prices, however. If history is any guide, there is little chance of this happening, so we are now on a course of escalating confrontation.

And it remains to be seen just how much impact the US sanctions will have in keeping Iranian crude oil off the global market. That's about 1 million barrels a day more than in early 2016. However, there is a great deal of disagreement and uncertainty over how quickly and how severely the impact of US confrontation will be.

The bank's analysts wrote Thursday that collapsing oil production in Venezuela and potential export disruptions in Iran could push the price of Brent crude as high as $100 per barrel in 2019. These sanctions will be far less effective than those imposed in 2012, with their success or failure largely outside of USA control.

The threat of new sanctions come amid an oil market that has already been tightening due to strong demand, especially in Asia, and as top exporter Saudi Arabia and top producer Russian Federation have led efforts since 2017 to withhold oil supplies to prop up prices.

The United States will likely re-impose sanctions against Iran after 180 days, unless some other agreement is reached. New sanctions will further consolidate Iran's oil customers into those less likely to pressure Iran for denuclearization or regime change, and will weaken the bargaining position of US allies in further negotiations with Iran.

Trump has further suggested that any country that continues to support Iran risks sanctions being imposed on them. A 20 percent reduction was an unofficial rule of thumb during the Obama era. Those seeking waivers will be required to start reducing oil imports from Iran immediately. This is unlikely to happen this time around as the U.S. has revoked the deal unilaterally and against the will of most other countries.

Crude oil production, meanwhile, has tightened as a global oil glut prompted a slowdown in drilling by Saudi Arabia and other major producers.

PEDEC, which is the development arm of the National Iranian Oil Company (NIOC), studies and operates development projects to explore, extract, and produce crude oil, natural gas. Washington can not ensure success alone, particularly because it can not offer sufficient heavy oil exports to compensate for the loss of Iranian heavy oil barrels from the market.

Saudi foreign minister Adel Al-Jubeir said his country stood ready to "do whatever it takes to protect our people".

A lot depends on what Iran does next.

USA sanctions on Iran will have a six-month period during which buyers should "wind down" oil purchases, meaning any loss of supply will not be immediately felt in the market.

It took almost three years to happen, but oil prices finally did it.

Several US military officials told CNN that there are increasing concerns Iran is on the cusp of an attack against Israel.

Saudi Arabia, for instance, has the ability to crank up output.