India, China Among Eight Countries Allowed to Buy Iranian Oil: Mike Pompeo

Adjust Comment Print

The United States today exempted eight countries, including India from the U.S. sanctions for buying Iranian oil.

Japan says it is pleased to be temporarily spared from penalties as the US resumes sanctions on Iran.

Oil prices slipped on Tuesday as concerns that an economic slowdown may curb fuel demand growth overshadowed the reintroduction of sanctions on Iran.

He repeatedly parried questions when asked about the commitment from India and China on zero-oil purchase from Iran. "I don't want to lift oil prices". "We are prepared to resist any pressure", Rouhani said.

He says imports cover nearly 80 percent of India's energy needs, and that it must import from Iran in order to grow its economy.

This group takes as much as three-quarters of Iran's seaborne oil exports, trade data shows, meaning the Islamic Republic will still be allowed to export some oil for now.

Joint output from the world's top producers-Russia, the United States, and Saudi Arabia-in October rose above 33 million bpd for the first time, up 10 million bpd since 2010.

"More than 20 importing nations have zeroed out their imports of crude oil already, taking more than 1 million barrels of crude per day off the market", U.S. Secretary of State Mike Pompeo told reporters in a briefing.

This group of eight buyers imported over 80% of Iran's roughly 2.6 million barrels per day (bpd) of oil exports past year, Refiniv Eikon data shows.

Additionally, 100 per cent of the revenue Iran receives from the sale of oil will be held in foreign accounts.

India, Iran's second-biggest oil customer, also cut orders ahead of the sanctions, hoping its effort to reduce reliance on Tehran would pay off in Washington and win it a waiver once the sanctions restarted. Meanwhile, the Democratic Party leadership criticised Trump for giving exemptions to some of the major Iranian oil importers.

Two Chinese sources familiar with the matter said the country would be allowed to buy 360,000 bpd of Iranian crude during the exemption period.

"In May, President Donald Trump pulled the United States out of the 2015 landmark Joint Comprehensive Plan of Action (JCPOA) terming it as disastrous". "We believe that China's normal cooperation (with Iran) within worldwide law is legal and legitimate, and this shall be respected". "Further, its negotiators failed to secure any restrictions on Iran's other destabilising activities, including the regime's ballistic missile development and proliferation", he told a NY audience.

"This is only the beginning of the Iranian production curtailment story, not the end", said Michael Tran, commodity strategist at RBC Capital Markets.

The US on Monday imposed "the toughest ever" sanctions on a defiant Iran aimed at altering the Iranian regime's "behaviour". Imposing maximal economic pressure on Iran is vital for getting Tehran back to the table, he said.

President Donald Trump's administration reinstated all remaining sanctions on Iran on Monday. Under the Obama-era deal, involving five permanent members of the UN Security Council and Germany, Iran had agreed to stop its nuclear programme in exchange for relief from economic sanctions.