US Ends Iran Waivers, Raising Global Oil Prices

Saudis talk possible production increases, warn 'no rush'

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.

Author: Jason Ditz

Jason Ditz is news editor of Antiwar.com.