Oil Official: Iranian Crude Export Records High in 2 Months

Posted May 10, 2018

On Tuesday, US president Donald Trump said the United States would pull out of the JCOPA, saying that one-sided deal that should have never been made and that it has not, and will never, bring peace.

When asked what Saudi Arabia will do, Jubeir said, "We will do whatever it takes to protect our people". Iran denies arming them.

For all these reasons, Saudi Arabia and other OPEC members will come under intense pressure to raise their output to make up for any loss of Iranian barrels.

Iranian oil exports have increased by roughly 1 million barrels per day since early 2016, and the big question is whether the market will be able to cope with a sharp drop in supply if sanctions are reimposed.

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Yemen's Shiite rebels fired ballistic missiles at the Saudi capital on Wednesday, according to the rebels and the Saudi military, which said its air defense forces intercepted missiles in the skies over Riyadh and the southern city of Jizan.

Kuwait said in a statement that it "understands and respects" Trump's decision. The interview was conducted before Trump said an announcement on Iran was imminent.

One factor that could partially mitigate any shortfall from Iran is soaring USA oil output. "Saudi Arabia will not in any way act independently of its partners".

Abdulaziz al-Sager, head of the Jeddah-based Gulf Research Centre, said the message was significant in that it reflected Gulf concerns.

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Iran had ruled out renegotiating the accord and threatened to retaliate if Washington withdrew. "With all the USA production coming into the system, the market would look forward to a glut".

Given the uncertainties about Iran's response over the next few months to Trump's action, as well as the good will Trump's decision has generated in Riyadh, the administration might also want to probe the possibility of extending the negotiations in order to win nonproliferation concessions and submit the agreement to a new Congress in January.

"But Mr. Trump's team dismisses that risk: Tehran doesn't have the economic strength to confront the United States, Israel and the Saudis".

"Following the U.S. withdrawal from the Iran deal, I would like to confirm our commitment to oil market stability for the benefit of producers and consumers", Falih said in a tweet. In March, Saudi Arabia's Crown Prince Mohammed bin Salman branded Iran's Supreme Leader Ayatollah Ali Khamenei as the "new Hitler". "The consequences could be severe", said Joost Hiltermann, Program Director, Middle East and North Africa at the International Crisis Group.

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