Tag: US Sanctions

In its monthly oil market report, IEA said that global oil consumption will top 100 million barrels per day (bpd) over the next three months, but the upcoming US sanctions against Iran's oil exports, as well as the emerging market crises in Venezuela and Brazil, are expected to affect this demand. 

Iran will react with equal countermeasures if Washington tries to block its oil exports, Reuters reported in July. In response, US has recently said it is full prepared to keep regional commerce flowing through the Arabian Gulf  and committed to ensuring the safety of the region.

The US Department of the Treasury’s Office of Foreign Assets Control sanctioned two Russian shipping companies and six vessels that were involved in ship-to-ship transfers of refined petroleum products with North Korea-flagged vessels, something that is prohibited by the UN Security Council.

West of England P&I Club outlined the potential impacts for shipowners and insurers that will arise from the US’s decision to withdraw from the Joint Comprehensive Plan of Action agreement signed by China, France, Germany, Russia, the United Kingdom, the United States, the European Union (EU) and Iran.

Following the US decision to withdraw from the JCPOA with Iran, President Trump issued an Executive Order on 6 August 2018, which essentially re-imposes the secondary sanctions against Iran. These sanctions were contained in the EOs revoked when the JCPOA was implemented in January 2016. 

On 8 May, US President Trump withdrew the US from participation in the JCPOA and to re-impose US sanctions against Iran. Now the US Office of Foreign Assets Control revoked the General License H which allowed US owned or controlled foreign entities to make certain business with Iran pursuant to the JCPOA.

BIMCO informed that the US sanctions on Iran are affecting the tanker shipping industry. The immediate effects may be less tangible but they add more uncertainty to the whole shipping industry that has plenty of uncertainty to deal with. Freight rates for crude oil tankers and oil product tankers are making losses.

The decision by President Trump on 8th May, 2018 to cease the US participation in the JCPOA and to re-impose US nuclear-related sanctions which were lifted to implement the JCPOA, is likely to have significant consequences for maritime trade with Iran and the insurance of such trade, the UK P&I Club warns.

After the US withdrawal from JCPOA, which will reinstate all sanctions that had been previously imposed on Iran, the European Commission took steps to preserve the interests of European companies investing in Iran, on the sidelines of an informal meeting in Sofia, demonstrating the EU's commitment to the Iran nuclear deal.

After the US decided to withdraw from the Joint Comprehensive Plan of Action regulating Iran’s nuclear activities, there is a change in the the focus of oil market analysis from the fundamentals to geopolitics. There is a 180-day period for customers to adapt their purchasing strategies and it remains to be seen other aspects of the sanctions will be implemented. When sanctions were imposed, Iran’s exports fell by about 1.2 mb/d. Namely, EIA said: It is too soon to say what will happen this time, but we should examine whether other producers could step in to ensure an orderly flow of oil to the market and offset a disruption to Iranian exports. However, neither Venezuela nor Mexico can raise output in the short term, but some of the 1.5 mb/d that have been reduced by other producers under the Vienna Agreement might be available to keep markets well supplied. In Venezuela, the decline of oil production is accelerating and by the end of this year output could have fallen by several hundred thousand barrels a day. The possible supply shortfall by Iran and Venezuela could cause a major challenge for producers to diverge from sharp price rises and fill the ...