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Iran oil sale dropped 1.7 million barrels, global agency says

Iran oil exports have dropped 1.7 million barrels per day, according to the International Energy Agency
Iran oil exports have dropped 1.7 million barrels per day, according to the International Energy Agency

Analysis by PMOI/MEK

 

Iran, April 26, 2019 The oil exported by the mullahs’ regime ruling Iran has dropped by 1.7 million barrels per day, according to the International Energy Agency (IEA), following the U.S. decision to exit the 2015 Iran nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA). Washington also re-imposed a slate of sanctions on Tehran.

More recently, the United States announced an end to all Iran oil sanctions waivers previously provided to eight countries, including China, India, Japan, South Korea and Turkey.

As we speak, the excess capacity for global oil production is three times the amount that Iran can export, the IEA insisted. This means the global market would not be affected despite the reduction in Iran’s oil exports.

The IEA estimates that the mullahs’ oil exports during March and April of this year have dropped to 1.3 million barrels per day, a reduction of about 300,000 barrels per day compared to the previous month. Iran’s oil exports have dropped 1.7 million barrels per day compared to the month of May last year when the U.S. initially exited the JCPOA.

India, one of Iran’s most important oil importers, announced that it has a strong plan to import oil from other countries for its refineries, according to Reuters.

Currently, Iraq, Saudi Arabia and the United Arab Emirates have expressed readiness to increase their oil productions in order to cover the shortage created by U.S. sanctions on Iran oil exports, Reuters added.   

Tehran had faced a growing crisis from the beginning of 2019.

Amir Hossein Zamani, the deputy oil minister of Hassan Rouhani’s cabinet, said back in January, “The oil customers of Iran aren’t willing to buy an extra barrel more than the quota the U.S. has defined.”

Zamani added the pressure and influence of the U.S. is to the extent that China, India, Japan, South Korea and other countries who had obtained exemptions from the U.S. were not willing to buy a single barrel more from Iran than the exemption they’ve received.

The U.S. re-imposed sanctions on the Iranian regime following its withdrawal from the nuclear deal which had given Tehran relief from international sanctions in exchange for limiting its nuclear program. The U.S. government has demanded the mullahs’ regime to tone down its other nefarious activities, including the development of ballistic missiles and terrorist meddling in neighboring countries. The sanctions have targeted the oil and financial sector of the Iranian regime and will largely constrain its capabilities to fund terrorism in the countries of the Middle East.

The U.S. also gave exemptions to several countries that were previously importing oil from Iran on conditions that they take steps to gradually decrease their imports. The U.S. had long stated that its goal is to reduce the Iranian regime’s oil exports to zero.

Since the initial sanctions came into effect, the price of oil had reduced. The deputy oil minister of the Iranian regime did not exactly state how much oil the regime was exporting and only declared, “The oil sector is trying to sell as much oil as it can.”

Zamani also said, “Iran lost the opportunity provided by JCPOA,” using the acronym for the nuclear deal forged between the Iranian regime world powers.

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