Although unilateral US sanctions imposed recently on Iran’s oil sector are tougher than the previous ones, the country can eventually sell its crude, said an Iranian lawmaker.
In May 2018, President Donald Trump pulled the US out of the Joint Comprehensive Plan of Action (JCPOA), signed between Iran and the P5+1 in July 2015, and reimposed Washington’s unilateral sanctions on Tehran in two phases.
Speaking to Iran Daily, Hedayatollah Khademi, a member of the Iranian Parliament’s Energy Committee, added in the previous sanctions period, Iran gained considerable experience in selling its oil despite limitations.
Commenting on international demand for Iran’s oil, he said customers will not easily consent to abiding by US sanctions.
“Despite US pressures, some of the world’s oil consumers are still meeting their demands through imports from Iran. This comes as certain states, such as China, do not pursue policies congruent with those of the US and may refrain from cooperating with Washington in abiding by Trump administration’s sanctions on Iran.”
Listing major importers of Iran’s oil as China, India, South Korea and Turkey, he said, “These are the traditional customers of the country’s crude and would like to continue their cooperation with Iran.
However when placed under pressure by the US, the continuation of cooperation with Iran may not be economical for these states, pushing them toward focusing gradually on other markets for meeting their oil demands, Khademi noted.
“In the previous sanctions period, we used all tools to sell our oil. We are required to do the same thing at present.”
He said efforts by countries, such as Saudi Arabia and the UAE, to compensate for Iran’s exclusion from the international market are, in a way, indicative of their hostility toward Iran.
In a calm and tensionless atmosphere, supply and demand determine oil prices, the lawmaker said, adding nevertheless, in a political atmosphere pervaded with tensions, oil prices will grow as the market lacks stability and customers do not feel safe to make continuous purchases and, thus, are constantly worried.
“Political problems and issues in the international arena and regional tensions significantly impact global oil prices. Due to the same thing and given the recent developments that have unfolded in the Middle East, we have been witnessing an unbalanced oil market since a few while ago.”
Unbalanced supply and demand in the global market and discussions about Iran’s reduced presence in the oil market have led to an increase in prices and a complicated situation, he said.
Complication in the market will directly impact those who have caused it, the MP warned.
“If the normal trend was continued in the market and OPEC members’ oil exports did not exceed their quotas, the market was in a more balanced situation. Under such a circumstance, neither industrial countries, which are in need of oil, nor exporters, would have suffered losses.”