Iran challenges US oil sanctions
LONDON (Reuters) – Iran will not allow any country replace its oil sales in the global market, the Foreign Ministry said on Thursday, after the United States told importers to halt Iranian purchases from May.
Washington has decided not to renew its exemptions from US sanctions against Iran that it granted last year to buyers of Iranian oil.
A senior US administration official said on Monday that President Donald Trump was confident Saudi Arabia and the United Arab Emirates would fill any gap left in the oil market.
“The Islamic Republic of Iran will not allow any country to replace Iran in the oil market. The United States and those countries will be responsible for any consequences,” Iranian Foreign Ministry spokesman Abbas Mousavi said.
The spokesman, whose comments were reported by Fars news agency, condemned
Saudi Arabia, the world's biggest oil exporter, and Bahrain for welcoming US sanctions on Tehran.
Saudi Arabia's energy minister Khalid al-Falih told Reuters on Thursday that China has "not yet" asked for more crude oil after the United States decided to end sanction waivers on Iranian oil imports that had permitted Beijing to keep buying from Tehran.
The United States re-imposed sanctions against Iran's oil exports last November, but Washington initially allowed the eight biggest buyers of Iranian oil – China is number 1 – to keep purchasing limited imports for six months ending April.
Al-Falih spoke briefly on the sidelines of a visit to Beijing for a summit on China's Belt and Road economic development initiative, rebuilding the old Silk Road to connect China with Asia, Europe and beyond. Beijing has criticized the US move to re-impose Iran oil sanctions.
US officials, speaking during a separate media call earlier on Thursday, said they were confident China would be able to find alternative supplies to Iran.
Asked if other Asian buyers had asked for more crude oil, al-Falih said: “In the beginning of May, we will find out demand for June and will be responsive.”
Saudi Arabia's April crude oil production was nearly steady with previous months and will be in the 9.8 million barrels per day (bpd) range or “maybe lower,” he said.
Before the re-imposition of sanctions, Iran was one of the biggest producers among the Organization of the Petroleum Exporting Countries (OPEC) at close to 4 million bpd. Iran's oil exports have now dropped to about 1 million bpd.
As a result of the tightening sanctions against Iran, and because of voluntary supply cuts by other OPEC-members including Saudi Arabia, crude oil prices reached their highest levels in six months this week.