The United States of America has put an end on the extension for purchasing of Iranian oil
Among the eight countries which Washington had given an extension of 180 days which were due to end next May the second, are some of the biggest purchasers of Iranian oil: China, Turkey and India
The United States of America’s government announced this Monday April 22nd the end of the extensions for Irianian oil purchasing, with the objective of reducing “to cero” Teheran’s exportation, at the same time it will take “coordinated” actions with Saudi Arabia and The United Arab Emirates to maintain global supply.
“President Donald Trump has decided not to renew the Significate Reductions Exceptions, when they expire on may second. This decision is looking to reduce Iranian oil exportations to cero, denying the regime its principal source of income”, indicated the White House in a release. Among the eight countries which Washington had given an extension of 180 days which were due to end next may second, are some of the biggest purchasers of Iranian oil: China, Turkey and India.
The Secretary of State, Mike Pompeo, claimed that with this decision the government of President Donald Trump “is speeding la pressure campaign in a calibrated way which combines our national security goals while we keep well-supplied global oil markets”.
“There won’t be any more extensions beyond May the second. Dot.” Highlighted Pompeo in a press conference from de State Department.
The American decision implies a cut in the supply side, which has shaken oil market, with ups around 3 %, so that Brent and Texas crude oil barrels are hitting maximums since six months ago. In the case of Brent, the crude oil barrel is quoting 73,8 dollars, although it has surpassed the 74,3, prices that had not been reached since the first day of November 2018. In the case of Texas, it is quoting 65,5 dollars per barrel, maximum since October 31st 2018.
According to the American newspaper The Washington Post, corroborated later by other mediums, USA will announce today that all purchasers of Iranian oil must stop its purchases in no time, or will be sanctioned. Putting to an end the extensions of said sanctions that the administration of USA gave to determined countries past month of November, when announced that it would abandon unilaterally the nuclear pact of 2015 made between Teheran and six international powers and puts again into operation the Teheran regime.
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Since its arrive at the White House on January 2017, Trump has increased the pressure over Teheran and accomplished it on May 2018 with his electoral promise of withdrawing Washington from the Nuclear Agreement made by previous administration of the president Barack Obama alongside other five international powers.
The pact, signed on 2015 between Iran and the 5+1 Group (USA, Russia, China, France, United Kingdom and Germany), imitated Iranian atomic program in exchange of lifting the international sanctions against Teheran.
As a consequence of the toughening of the sanctions, Iranian oil exportations have fallen around 800.000 barrels per day (of the past 2,5 millions) and the national currency, the rial, has been strongly devaluated.
Eight countries: China, India, Japan, South Korea, Italy, Greece, Tukey and Taiwan, figured in the list of exceptions, because it was announced that they would last a few months. A columnist of the American newspaper assures that the exceptions will come to an end on may the second.
The Chinese Government, one of the biggest importers of Iranian oil, has expressed its opposition the announcement made by USA, which will affect it to a large extent. The spokesman of External minister, Geng Shuang, has repeated that china opposites permanently to the USA unilateral sanctions above Iran and the bilateral cooperation with Iran is always according the law.
To the presumable offer cut that implies the end of Iranian exportations are added up this year other factors that are contributing to crude oil prices’ rising, which started this year in 45 dollars (Brent). The new upturn of instability in Libya or Venezuela’s situation, as well as the recent production cut accorded by OPEC, increases the pressure by the offer side, making the price go up, which collides, in every case, with Trump’s wishes of having unexpansive crude oil, for which he will have to rely on the mayor world producer, Saudi Arabia, attempting to convince Riad to increase production.