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2018 budget in danger as Saudi Arabia pump 2m more barrels

04 July 2018
2018 budget in danger as Saudi Arabia pump 2m more barrels

Iran will use various methods to prevent a possible reduction in its oil exports after re-imposition of the US sanctions.

The private sector in Iran was allowed to export crude oil in a bid to thwart US sanctions, Iran's first vice president said here on Sunday.

Iran says it will find ways to export its oil, despite what he does.

Shortly after, the White House backtracked on Trump's statement, saying that Riyadh is ready for measures aimed at stabilizing the oil market.

"We're not granting waivers", the official said.

"There is little confidence in the market that we're going to escape an ever-tightening supply and demand balance now".

The US earlier this year withdrew from the deal limiting Iran's nuclear programme in return for allowing the company to resell its oil on world markets.

"Also, taking a broad range of estimates from IEA, EIA and others, Saudi held spare capacity in the range of 1.3 - 2.1 mb/d when oil production was ~10 mb/d".

"We will surely do something to thwart the U.S. rallying cry that Iranian oil must be stemmed", First Vice President Eshagh Jahangiri said in statements broadcast on state television.

A US State Department official said in a briefing that more than 50 global companies intend to drop the use of Iranian oil before the 4 November restart of the sanctions.

WASHINGTON-The Trump administration will consider requests for waivers from economic sanctions against Iran on a "case-by-case" basis, a senior State Department official said Monday, a step back from threats to insist on zero imports by a November 4 deadline.

He said in the Fox interview that European companies would face sanctions if they traded with Iran now.

He added, "We will prove that the USA claim to stop exportation of Iran's oil is an illusion".

Jahangiri said: "They're begging the Saudis to raise their output so that if Iran's quota decreases nothing will happen to the markets".

Matthew Smith, the director of commodity research at ClipperData, told UPI that oil prices so far this week are moving on one hand on OPEC pledges of more production, but correcting later on fears of supply-side strains.

Iran and Saudi Arabia broke off diplomatic relations in 2016 and are locked in several proxy wars in the Middle East, including in Yemen.

The fall came as the Russian Energy Ministry said on Monday that the country's oil output increased to 11.06 million barrels per day in June from 10.97 million barrels per day in May.