The Trump Administration’s announcement that they will no longer offer
waivers to countries that need to buy Iranian oil sent the price of oil
rising in post-Easter trading. Prices for Brent crude were up 2.6% in
morning trading, with expectations that the cuts could raise prices even more.
Iran exports around a million barrels of oil daily. The waivers are
intended to drop exports to zero, though the Chinese intend to keep
buying, the expectation is that the market will be losing a lot more
supply than it can afford.
The US talked up the idea that Saudi Arabia would replace the lost
supply, and while Saudi officials indicated they were considering
pumping more, they added that there was “no rush” and they plan to see the impact of the sanctions first.
Iraq, who was also expected to try to cash in on rising prices with more
production, appeared to reject the idea, saying they don’t intend to
take any unilateral decision on the market, and don’t think any other
OPEC members should either.
US Ends Iran Waivers, Raising Global Oil Prices
Saudis talk possible production increases, warn 'no rush'
Jason Ditz is Senior Editor for Antiwar.com. He has 20 years of experience in foreign policy research and his work has appeared in The American Conservative, Responsible Statecraft, Forbes, Toronto Star, Minneapolis Star-Tribune, Providence Journal, Washington Times, and the Detroit Free Press.
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