Update on Iranian Sanction Waivers
Posted: Mon Nov 26, 2018 10:34 am
On November 23, Bloomberg reported countries armed with waivers to keep importing Iranian oil without running afoul of U.S. sanctions, are preparing to buy. The exemptions mean at least some supplies from OPEC’s third-biggest producer will keep flowing into international markets, after its exports plunged almost 40% since April -- the month before Washington announced the curbs. In a bid to keep customers, the state-run National Iranian Oil Co. has been offering record discounts on its crude.
Almost all major buyers of Iran’s oil had negotiated with the U.S. for the waivers, arguing that cutting purchases to zero would affect their energy industries and boost fuel costs. While the U.S. granted exemptions to eight buyers of Iranian oil, that number will effectively shrink to five by year-end and an oversupplied market in 2019 will help cut Iranian oil sales further, according to Brian Hook, State Department’s special representative for Iran. India, China and South Korea, three of Asia’s top four buyers, got waivers allowing them to purchase a combined 860,000 bpd. The levels for Japan, Italy and Greece are yet to be confirmed. Turkey got waivers for about 60,000 per day, far less than it bought in 2017. The exemptions have been granted for 180 days, and will be reviewed toward the end of the period.
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MY TAKE: Some of the Wall Street Gang believes these waivers will just keep being extended. I doubt it. It is time to do something about Iran's support for terrorist groups and anyone with a brain knows we can never allow them to get a nuke.
Almost all major buyers of Iran’s oil had negotiated with the U.S. for the waivers, arguing that cutting purchases to zero would affect their energy industries and boost fuel costs. While the U.S. granted exemptions to eight buyers of Iranian oil, that number will effectively shrink to five by year-end and an oversupplied market in 2019 will help cut Iranian oil sales further, according to Brian Hook, State Department’s special representative for Iran. India, China and South Korea, three of Asia’s top four buyers, got waivers allowing them to purchase a combined 860,000 bpd. The levels for Japan, Italy and Greece are yet to be confirmed. Turkey got waivers for about 60,000 per day, far less than it bought in 2017. The exemptions have been granted for 180 days, and will be reviewed toward the end of the period.
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MY TAKE: Some of the Wall Street Gang believes these waivers will just keep being extended. I doubt it. It is time to do something about Iran's support for terrorist groups and anyone with a brain knows we can never allow them to get a nuke.