Pompeo set to meet oil executives, push USA crude exports, Iran issue

Pompeo set to meet oil executives push US crude exports Iran issue

The Iranian defense minister on Wednesday warned against any attempt by Israel to attack Iran's oil tankers, Press TV reported.

US sanctions against Iran were restored previous year after Donald Trump announced unilateral withdrawal from the Joint Comprehensive Plan of Action (JCPOA), despite Iran complying with all conditions of the deal.

Reutersreported on Wednesday that Iran's oil tanker fleet is aging and US sanctions are making it hard for Tehran to maintain or replace the ships.

Thanks to the remarkable strength in shale production, the United States will account for 70 percent of the growth in global oil production through 2024, transforming the global oil markets and trade, the International Energy Agency (IEA) said in its annual oil market forecast this week.

India has been allowed by Washington to continue to buy about 300,000 bpd oil or 9 million barrels in a month till early May.

Having its tankers flagged in Iran presents problems for Tehran - even if it can secure more vessels and approved buyers for its oil, shipping experts say.

INU- Sources in Iran and across the West have said that Iran is trying to obtain second-hand oil tankers.

When at end of January the USA slapped sanctions on Venezuela's oil industry and state oil firm PDVSA in order to deprive Nicolas Maduro's regime of pretty much its only hard-currency income, oil prices barely budged. Washington has also cracked down on more Iranian networks, making it riskier to get involved with Iran, according to bankers.

A senior Iranian official told Reuters that "Plenty of countries are happy to do business with Iran", adding that there are several ways to cope with the shortage of tankers, including using tankers of other countries.

T he USA imposed sanctions on Iran in November after abrogating a nuclear deal in a dispute over Tehran's nuclear and missile ambitions, although India and other countries were exempted from the curbs.

After Western sanctions were lifted, Iran also started talks with South Korea's Daewoo Shipbuilding and Marine Engineering Co. about forming a joint venture to establish a shipyard in Iran. And according to Daniel Yergin, vice chairman at IHS Markit, the record-setting USA oil production has given flexibility to the Administration in the sanctions.

It is believed that more than 15 Iranian tankers are coming up to 20 years old. While India has reduced purchases of Iranian oil, it has been in talks on extending the sanctions waiver, known as a significant reduction exception, the officials added.

Iran has more than 50 tankers, but this month, for example, it's using 12 of those to store oil in floating storage at sea, according to MarineTraffic data cited by Reuters.

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