Iran’s Oil Revenues Increase by Almost 50% Despite Trump Sanctions

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Standard Chartered sees Brent rising much farther, averaging as high as $74 per barrel this year, before averaging as high as $83 per barrel in 2020.

PKONWEB Report (New York) — Tehran’s revenue from oil exports in the first nine months of the current Iranian year — which runs from 21 March 2018 to 20 March 2019 — increased by almost 49 percent year-on-year despite the re-imposition of US sanctions, the IRNA news agency reported on Monday.

According to the IRNA, the main reason for the increase in revenue was the oil price hike in the global markets.

The reports come after the United States May 2018 announced its unilateral withdrawal from the Iran nuclear deal and reimposition of sanctions. Later that year–in November, two packages of sanctions came into effect with the aim of forcing Tehran to negotiate a new agreement. Washington’s decision was not supported by other signatories to the deal — China, France, Germany, Iran, Russia, the United Kingdom, and the European Union — which insisted on Tehran’s compliance with the deal.

The US restrictions include measures that curb Iran’s oil industry. Only eight nations — China, Greece, India, Italy, Japan, South Korea, Taiwan and Turkey — received temporary exemptions from the sanctions on importing oil from Iran.

Meanwhile, the Trump administration is pressuring Iraq to stop buying energy from its neighbor and sole foreign supplier, Iran, in what has become a major point of conflict between Washington and Baghdad.

Iraq’s defiance further jeopardizes Mr. Trump’s goal of getting all nations to comply with sanctions after withdrawing from the deal to limit Tehran’s nuclear program last year. Already, European nations have set up a legal financial mechanism to do business with Iran, and China and India are resisting American efforts at prodding them to cut off oil purchases.

In a related development, the state-owned National Iranian Oil Company (NIOC) delivered 1 million barrels of crude oil to the Iranian Energy Exchange (IRENEX) on January 21, reported AzerNews citing a senior official of NIOC.

This will be the third time a state company offered oil to the private sector in the international ring IRENEX.

NIOC’s foreign relations director, Said Khoshru, declared that oil will be sold in batches of 35,000 barrels at a price of $ 52.42 a barrel.

He noted that purchases can be made in hard currency or in Iranian riyals, which makes this round of offers different from previous ones.

The official also stated that NIOC had obtained the permits for the sale of 3 million barrels of oil on IRENEX, and the company would act accordingly on future sales.

Over the last few weeks oil prices have rebounded. Standard Chartered sees Brent rising much farther, averaging as high as $74 per barrel this year, before averaging as high as $83 per barrel in 2020.

Iran holds some of the world’s largest deposits of proved oil reserves, ranking as the world’s fourth largest reserve holder of oil. Iran also ranks among the world’s top 10 oil producers.

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