U.S. attempts to drive Iranian oil exports down to zero come against the backdrop of a global market that is sufficiently well supplied to avoid price disruptions, senior U.S. officials said on Thursday, ONA reports citing Reuters.
“There’s roughly a million barrels per day (bpd) of Iranian crude (exports) left, and there is plenty of supply in the market to ease that transition and maintain stable prices,” said Brian Hook, U.S. Special Representative for Iran and Senior Policy Advisor to the Secretary of State, speaking in a call with reporters.
“The price situation is well in hand,” said Assistant Secretary of State for Energy Resources Frank Fannon, speaking during the same call. “Now is the right time to go to zero” Iranian oil exports, Fannon said, adding the market was “well supplied”.
The United States re-imposed sanctions against Iran’s oil exports last November, but initially allowed the eight biggest buyers of Iranian oil limited imports for another half-year.
Iran’s biggest oil buyers are China, India, South Korea, Japan and Turkey.
China is the biggest buyer, and Beijing has criticized the move to re-impose sanctions.
Hook said during the call he was confident China would be able to find alternative supplies to Iran. He said there had yet to be an announcement from Washington on whether China could continue to export oil produced from assets it owns in Iran.
Another country relying heavily on Iranian supply is close U.S. ally South Korea, where petrochemical facilities use Iranian condensate, a super-light form of crude oil.
Fannon said the U.S. government was working closely with South Korea to ensure supply for its petrochemical facilities.