Economy

Saudi, UAE overstate their oil capacities: Iran oil minister

Saudi, UAE overstate their oil capacities: Iran oil minister

The Trump administration is poised to tell five countries, such as allies Japan, South Korea and Turkey, that they will no longer be exempt from US sanctions if they continue to import oil from Iran. The measure comes into effect on May 2.

Oil prices have kept gaining momentum since the start of the year due to some geopolitical concerns but the rising prices encountered resistance during the week although the US sanctions on Iran provided a solid floor for the prices. We have open and transparent trade with Iran on crude oil says Geng Shuang, the spokesperson for the foreign ministry of China.

The companies, which are concentrated in states such as Texas, Oklahoma and California, look like being the main winners from tougher U.S. sanctions on Iran, Bloomberg has reported.

"Announcements of the kind do not have any impact apart from speculative growth of global prices for crude", the analyst said.

Oil futures slid sharply on Friday after a anxious President Donald Trump issued pleas to OPEC to lower prices. Apart from that, Washington is reportedly seeking to bring American oil to the global markets, which may become available due to the ban.

More news: Britain's Hunt says he would choose no deal over no Brexit

Meanwhile, the International Energy Agency (IEA) said on Tuesday that markets are now adequately supplied, adding that it will continue to monitor the oil market closely and stands ready to act if necessary to ensure markets remain well supplied.

Eight countries including China, India and Turkey had been given temporary waivers by the US when it reimposed sanctions on Iran previous year.

Oil prices declined in volatile trading on Thursday as traders continued to digest the rising USA stockpiles and the impact of tightened US ban on Iran exports. Under the OPEC-led deal on supply cuts, Saudi Arabia can pump up to 10.3m bpd. He calls it as a long-arm jurisdiction that has been imposed by the US on Iran. India had already nearly halved their Iranian oil imports during this time period.

Analysts at Kotak also expect global oil markets to tighten further in the near term due to the full curtailment of Iran's oil exports and the possibility of disruptions in crude supplies from Libya given escalating unrest in the country.

Obama's sanctions targeted only Iran's nuclear programme. "In a statement, the White House said it had been carrying" timely actions to assure that worldwide demand is fulfilled as all Iranian oil is removed from the marketplace".