Bleak Picture For Iran As US Reimposes Oil Sanctions

Iran’s oil exports fell by over 1mn b/d from 2017 levels even prior to this week’s re-imposition of US sanctions. Issuing waivers to eight Iranian clients, US President Trump says he is going “easy” on Tehran for fear of higher oil prices. While plenty of governments have talked tough against the measures, they have failed to back this up with concrete actions.

The US on 5 November reimposed oil, shipping and banking sanctions against importers of Iranian oil, dealing a crushing blow to a country already mired in economic turmoil.

US President Donald Trump withdrew from the “rotten” 2015 Joint Comprehensive Plan of Action (JCPOA) on 8 May saying it didn’t go far enough in restricting Tehran’s nuclear program, its ballistic missile program and role in regional conflicts.

Following this, on 7 August the US reinstated a slew of sanctions hitting Iran’s US dollar transactions, its auto sector and airplane orders ( MEES, 10 August ).

But, given the Iranian economy’s dependence on oil, it is the latest measures that will bite the most. Following the implementation of the now unraveling JCPOA in January 2016 ( MEES, 29 January 2016 ) Iran managed to ramp up its exports by almost 70% from 1.21mn b/d in 2015 to 2.04mn b/d over the course of 2016. (CONTINUED - 1491 WORDS)

DATA INSIDE THIS ARTICLE

chart Imports Of Iranian Crude Oil And Condensate By Country (Mn B/D): August And September See Sharp Falls As 5 Nov Sanctions Day Got Closer
chart Iran Keeps Crude OSPs At Record Discounts To Competing Saudi Grades For December (To Asia, $/B FOB)
table Iran's Key Crude And Condensate Buyers ('000 B/D)