Iran To Raise Oil Exports If Biden Relaxes Crippling Sanctions According To State Media

Reuters: Iran prepares to raise oil exports if sanctions eased: state media (Reuters) - Iran has instructed its oil ministry to prepare installations for production and sale of crude oil at full capacity within three months, state media said on Sunday, ahead of a possible easing of U.S. sanctions after President-elect Joe Biden takes office. 

They quoted President Hassan Rouhani as saying that Iran exported more than two million barrels a day before U.S. President Donald Trump exited the 2015 nuclear deal with six powers in 2018 and reimposed sanctions that have hit Iran’s economy hard by sharply cutting its vital oil exports. 

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Update #1: Iran will reportedly hike oil production if Biden eases sanctions Trump imposed -- NYPost Update #2: Iran to raise oil exports if sanctions are eased: state media -- CGTN 

WNU Editor: India is ready to buy .... India looks to resume Iran, Venezuela oil imports under Biden (Reuters).

Iran Releases Photos Of 'Attacked' Oil Tanker

Iran released pictures showing two gaping holes in the hull of an oil tanker, Sabiti, it alleges was attacked off Saudi Arabia last week

Daily Mail/AFP: Gaping holes in the side of Iranian oil tanker that was hit by two missiles are revealed for the first time, as Putin heads to Saudi Arabia to calm rising tensions between the countries

* Russian President Vladimir Putin will visit Saudi Arabia following tanker attack
* Iranian-flagged tanker was hit by two suspected missile strikes off Saudi coast
* Saudi oil installations were also targeted - halving the kingdom's crude output
* New images have revealed the damage done during missile attacks last week

Damage done to an Iranian oil tanker struck by two suspected missile strikes off the coast of Saudi Arabia has been revealed in new images.

Images released yesterday by Iran's National Iranian Oil Tanker Company (NITC) showed two gaping holes in the side of the vessel.

For the first time the alleged damage done to the Iranian-flagged tanker showed the square-shaped impacts just above the water line of the Sabiti.

Russian President Vladimir Putin visited Saudi Arabia today, where he will seal oil agreements as well as use his influence to defuse rising tensions in the Gulf

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More News On Iran Releasing Photos Of 'Attacked' Oil Tanker

Gulf tanker attacks: Iran releases photos of 'attacked' ship -- BC
Iran oil tanker damage from apparent missile attack captured in new photos -- FOX News
Iran reveals pictures of oil tanker 'damaged by rocket strike' -- SKY News
Iran alleges foreign government behind 'treacherous' ship attack -- AFP

Iran Is Reporting That One Of Its Super-Oil Tanker Was Hit With Two Missiles Off The Saudi Coast

Iranian media said the blasts occurred around 5am and 5.20am local time

Daily Mail: Iranian oil tanker 'is hit by two MISSILES' in 'terrorist' attack off of Saudi Arabia that caused explosion and heavy damage

* Iranian supertanker Sabiti rocked by two explosions in the Red Sea near Jeddah
* Iran said vessel was hit by two missiles in what experts called a 'terrorist attack'
* It comes after a series of attacks on Saudi oil tankers which were blamed on Iran
* Iran has not yet said who it believes was responsible for Friday's attack

An Iranian oil tanker has been hit by two explosions off the coast of Saudi Arabia.

Tehran said a supertanker called Sabiti, owned by The National Iran Oil Company, was struck by two missiles 60 miles from the port of Jeddah around 5am Friday.

The explosions badly damaged two tanks on board the vessel, causing them to leak into the Red Sea.

'Experts believe it was a terrorist attack,' a source told Iranian news agency ISNA.

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WNU Editor: According to reports, this Iranian supertanker had its transponder off. Off the top of my head, there are two suspects who could have pulled this missile attack. Israel or Saudi Arabia.

More News On Reports That an Iranian Super-Oil Tanker Was Hit With Two Missiles Off The Saudi Coast

Iran says oil tanker struck by missiles off Saudi Arabia -- AP
Iranian oil tanker hit off Saudi coast, may have been missiles: Iran reports -- Reuters
Explosions set Iran oil tanker ablaze near Saudi port city of Jeddah -- France 24
Blasts hit Iran-owned oil tanker near Saudi port city -- DW
Iran-owned oil tanker hit by two missiles near Saudi port city, state TV says -- ABC News Online
Explosions on Iranian oil tanker off Jeddah's coast cause spill -- Al Jazeera
Iran says oil tanker hit by two missiles, leaking crude into Red Sea -- UPI
Iran oil tanker 'explosion' reported off Saudi coast -- BBC
Iranian oil tanker near Saudi Arabia coast hit by missiles, officials say -- FOX News
Iranian oil tanker hit by two missiles near Saudi port: state news -- CNN
Iranian Oil Tanker Struck By 2 Missiles Near Saudi Port -- Zero Hedge
Oil prices surge after Iran says missiles struck its tanker near Saudi Arabia -- RT

Iran Boasts That Even With Sanctions, Iran Has New Customers For Its Oil

Oil tankers pass through the Strait of Hormuz, December 21, 2018. REUTERS/Hamad I Mohammed

Reuters: Iran says despite U.S. sanctions, it has found new 'potential' oil buyers

LONDON (Reuters) - All countries that were granted waivers from the United States to continue buying a certain amount of Iranian oil imports are complying with U.S. sanctions, a senior Iranian energy official said, noting that Tehran was hopeful to find new buyers.

The United States withdrew from a nuclear deal with Iran last year and snapped sanctions in place to choke Iran’s oil and banking industries, while temporarily allowing eight customers to keep buying crude from the Islamic Republic.

“China, India, Japan, South Korea and other countries that were granted waivers from America to import Iranian oil are not willing to buy even one barrel more from Iran,” Amir Hossein Zamaninia, Iran’s deputy oil minister for trade and international affairs, was quoted as saying by the Oil Ministry’s news agency SHANA.

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Update #1: Iran finds new oil customers despite US sanctions (Press TV)
Update #2: Iran has new ‘potential’ buyers for its oil, defying US sanctions (RT)

WNU Editor: I would not be surprised if Iran has found new potential customers for its oil. I would also not be surprised if they are selling this oil at a huge discount. But the bottom line is that these sanctions are hurting, and Iran is facing tough economic times .... Iran Bracing For Economic Contraction As Oil Exports Crumble (OilPrice.com).

Iran Threatens To Block All Persian Gulf Oil Exports If The U.S. Blocks Iranian Oil Exports

RFE: Iran's President Threatens To Close Strait Of Hormuz If U.S. Blocks Oil Exports

Iranian President Hassan Rohani has threatened again to close the Strait of Hormuz, the passageway for nearly a third of all oil traded by sea.

Iranian state TV quoted Rohani as saying on December 4 that "if someday, the United States decides to block Iran's oil [exports], no oil will be exported from the Persian Gulf."

Rohani also vowed that the United States would not be able to prevent Iran from exporting its crude oil.

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More News On Iran Threatening To Block All Persian Gulf Oil Exports If The U.S. Blocks Iranian Oil Exports

No oil will go through Persian Gulf if US targets Iran’s crude exports: Rouhani -- Press TV (Iran)
Rouhani to U.S: No oil will be exported from Persian Gulf if Iran’s oil sale halted -- Tehran Times
If Iran can't export oil from Gulf, no other country can, Iran's president says -- Reuters
Iranian President Hassan Rouhani threatens to close Strait of Hormuz if US blocks oil exports -- CNBC
Iran's Rouhani threatens to cut off Gulf oil -- AFP
US can’t stop Iran oil exports, Persian Gulf will shut if they try – Rouhani -- RT
Iran Deploys Fleet to Gulf of Aden as Rouhani Threatens to Block Hormuz Strait -- Sputnik

Iran Warns OPEC To Not Boost Oil Production

We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now!

— Donald J. Trump (@realDonaldTrump) September 20, 2018

OilPrice.com: Iran: We Won’t Let OPEC Boost Production

OPEC does have a meeting in the coming days in Algiers to assess the state of the oil market, and decide on next steps. But one of the largest near-term challenges for OPEC is balancing the oil market in the wake of lost barrels from Iran – a key factor driving up prices and also a fact that seems to be lost on the American President.

There are no clear solutions for OPEC+ that leave the oil market satisfied while also maintaining group cohesion.

The obvious course of action is to allow for higher production levels. But there is no way to do this while also getting all parties on board. Iran’s oil minister said that any change to Tehran’s allotment would be blocked. “I will definitely veto any decision that threatens our national interest,” Bijan Zanganeh said in an interview with reporters from S&P Global Platts and Bloomberg News. “Anyone who says they will compensate for the shortfall in the market is speaking against Iran. This is a 100% political statement, not economic.” Because any OPEC agreement requires unanimous consent, Iran could block any changes to the formal oil production cut deal.

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WNU Editor: To makes its point, Iran is doing this .... Iran puts on 'show of strength' military exercise in Gulf (Reuters). My prediction .... OPEC will publicly state that they will not increase OPEC production to replace Iranian oil lost due to sanctions, but member states will increase production due to the high prices that are now on the market.

Update: Trump Hit Iran With Oil Sanctions. So Far, They're Working. (The New York Times)

Iran OPEC Chief: Saudi Arabia And Russia Have Taken Oil Market 'Hostage'

Ardebili and accused Russia, Iran and the UAE of welcoming US sanctions on Iran for their own gain [File: Morteza Nikoubazl/Reuters]

Al Jazeera: Iran OPEC chief: 'Saudi and Russia are taking oil market hostage'

Iran's OPEC chief Hossein Kazempour Ardebili says Saudi and Russian actions are a result of US attempts to cut Iran off.

Iran's OPEC governor, Hossein Kazempour Ardebili, has accused fellow OPEC country Saudi Arabia and non-OPEC country Russia of taking the global oil market hostage.

Their actions are a direct result of attempts by the United States to cut Iran's access to the global market off, he said.

"Russia and Saudi Arabia claim they seek to balance the global oil market, but they are trying to take over a part of Iran's share," Ardebili told Iran's oil news agency SHANA.

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Update #1: Iran says Saudi Arabia and Russia have taken oil market 'hostage': SHANA (Reuters)
Update #2: Iran says OPEC has 'not much credit' left (AFP)

WNU Editor: Iran should not worry too much. There is no capacity to replace the oil that Iran produces .... Iran: There Is No Spare Oil Capacity (OilPrice.com).

Iran Announces Plans To Circumvent U.S. Oil Sanctions

Al Jazeera: Iran vows to thwart US efforts to block its oil exports

Tehran says it will allow private companies to export crude oil to counter Washington's bid in stemming its exports.

Iran has vowed to thwart US efforts to block its oil exports by allowing private companies to export crude oil.

Eshaq Jahangiri, Iran's first vice president, also warned rival OPEC producer Saudi Arabia that it would never take Tehran's "place" on the international oil market.

"We will surely do something to thwart the US rallying cry that Iranian oil [exports] must be stemmed," Jahangiri said in a speech during an economic event broadcast on state television.

"The [Iranian] government has a plan ... and God willing we are certain that we will be able to sell as much oil as we want," Jahangiri added.

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WNU Editor: I am sure the Iranians are gong to find ways to circumvent oil sanctions, but to do so they will have to lower their price. They will also be limited by how much they can export. Not everyone is going to jump in and buy Iranian oil .... even at a good price, the risk of U.S. retailiation is no joke.

Update: Speaking of retaliation .... Trump: US will 'absolutely' sanction European companies that do business with Iran (The Hill),

More News On Iran Announcing Plans To Circumvent U.S. Oil Sanctions

Iran plans private-sector oil sales to thwart US sanction: First VP -- Press TV (Iran)
Iran eyes private oil exports to help beat U.S. sanctions -- Reuters
Iran announces plan to circumvent US oil sanctions -- DW

How Much Will World Oil And Gas Prices Be Impacted By New Iranian Sanctions.

CNN: What Trump's Iran decision means for oil and gas prices

President Donald Trump chose a dicey time to crack down on Iran, the world's fifth-biggest oil producer.

Global oil supplies were already getting tight before Trump vowed on Tuesday to exit the Iran nuclear deal and impose "powerful" sanctions on the OPEC nation.

Energy industry insiders say Trump's tough stance on Iran will probably keep oil and gasoline prices higher than they would otherwise be.

Iran ramped up its oil production by 1 million barrels per day after sanctions were lifted in early 2016. At least some of that oil will now be pulled from the market — at a time when oil prices are already rising because of production cuts by OPEC and Russia as well as instability in Venezuela.

Dan Eberhart, CEO of oilfield services company Canary LLC, drew a direct connection: "Withdrawing from the Iran nuclear deal will support higher oil prices."

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WNU Editor: It will take 6 months before new sanctions will have an impact on Iran's oil industry. And even then .... almost all of Iran's customers have already made it clear that they will still be buying oil from Iran. The problem will be on how to pay Iran for its product, since most banks will now steer clear of Iran in order to avoid U.S. retaliation.

Update: Here is a good summary on who buys oil from Iran .... Here Are The Countries That Buy Iran's Oil, And What They May Do Next (Zero Hedge)

Iran Invites Foreign Companies To Invest In Their Oil Industry

Iran's South Pars gas field (file photo)

Bloomberg: Iran Kicks Off Oil-Development Tender to Woo Foreign Investors

* State oil producer NIOC seeks to pre-qualify foreign bidders
* NIOC to announce list of elgibile oilfield bidders on Dec. 7

Iran is ramping up efforts to woo foreign investment in an energy industry stunted by years of sanctions, with a request for companies to submit documents to pre-qualify as bidders to develop the country’s oil and natural gas fields.

State-run National Iranian Oil Co. will solicit documents from international companies starting Monday, according to an announcement posted on the website of Shana, the oil ministry’s news service. Interested companies will have until Nov. 19 to submit their qualifications, and the government will publish a list of eligible bidders on Dec. 7, according to Shana.

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WNU Editor: Iran wants to break-away from its dependency on China .... Tired of China's grip, Iran confronts harsh oil reality (Bloomberg), and being dependent on Asia to buy its oil .... Asia Soaks Up Iran’s Post-Sanctions Oil (WSJ). My prediction .... it is going to be a hard sell. There is plenty of oil elsewhere .... and these other regions and countries do not have the problems and threats that Iran has.

More News On Iran Inviting Foreign Companies To Invest In Their Oil Industry

Iran to invite foreign companies to bid on oil and gas -- AP
Iran to start bidding for oil, gas projects on Monday: SHANA -- Reuters
Iran Kicks Off Tender To Develop Oil, Gas Projects -- RFE
Iran invites oil majors to bid for new project -- Press TV (Iran)

Iran Is Now Backing Moves To Stabilise Oil Prices

RBC Capital Markets

Elena Holodny, Business Insider: Iran just tweaked the way it talks about the oil market

Iran gingerly offered some support for an oil production freeze earlier this week — without actually agreeing to join one.

Since the lifting of sanctions, Iran has taken a hard stance against any production freeze, a position that ultimately ended up being a major reason for Saudi Arabia bailing on the Doha meeting back in April.

However, on Tuesday, Iran's oil minister Bijan Zanganeh seemed to suggest that he'd support measures keeping prices around $50-$60 a barrel.

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WNU Editor: The Iranians are now acknowledging the impact that fracking tech has had on oil prices, and are now willing to compromise on future oil price discussions. What this means is that wild oil price fluctuations may be a thing in the past.

Has Iran's Oil Production Peaked?

(Click on Image to Enlarge)

Anthony Dipaola and Grant Smith, Bloomberg: Iran's Oil Comeback May Already Be Over

* Crude output may peak in 2016 at 3.6-3.8 million barrels a day
* Investors facing sanctions, political risk in entering country

Iran easily beat expectations with its speed in boosting oil exports after the lifting of sanctions. Without an injection of cash and the easing of remaining trade barriers, the recovery may have run its course.

When restrictions on Iran’s oil exports were relieved in January following a nuclear pact with world powers, analysts from Goldman Sachs Group Inc. to Barclays Plc doubted it could return to previous levels this year. The Persian Gulf state defied the skeptics with a 25 percent surge in production and aims to reach an eight-year high of 4 million barrels a day by year-end.

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WNU Editor: From an investment point of view .... Iran is one big risk. And while I do expect Iran will one day be able to attract the investment and expertise it needs to develop and maximise its oil fields .... it is not going to happen at today's prices, and it will certainly not going to happen until the U.S. can assure these investors that they will not impose fines and sanctions on them should they decide to do business with Iran.

Embargo Lifted, Iranian Oil Reaches Europe

The tanker Monte Toledo delivered a shipment of Iranian oil to the refinery of Compañía Española de Petróleos, in Algeciras, a southern Spanish port near Gibraltar, on Sunday. Credit Luke MacGregor/Bloomberg

New York Times: Embargo Lifted, Iranian Oil Reaches Europe

Iranian oil attained a new level of restored legitimacy Monday, with word that a tanker anchored near a Spanish refinery had begun off-loading the first shipment for Europe’s consumption since the lifting of a 2012 European Union embargo.

Shana, the official news service of Iran’s Oil Ministry, said the tanker, the Monte Toledo, an 890-foot vessel registered in Portugal, had started transferring the Iranian oil to the refinery of Compañía Española de Petróleos, in Algeciras, a southern Spanish port near Gibraltar.

The news, first reported Sunday by Bloomberg, came as President Hassan Rouhani of Iran and other top Iranian officials asserted that the country was regaining its share of the market in crude oil, forfeited when the European oil embargo and other Western sanctions were intensified years ago in response to Iran’s disputed nuclear activities.

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WNU Editor: This is only going to depress oil prices further.

Iran Is Ready To Pump Oil

Wall Street Daily: Iran Will Soon Pump Oil at $1 Per Barrel

It’s a true tell of the state of the markets, when a tired old story sends oil rocketing about 10% higher in price

In this case, that “tired old story” is Venezuela calling for an emergency meeting of OPEC and Russia.

Venezuela has a habit of calling for such meetings because its leftist government thinks oil should never sell below $100 per barrel.

The market reaction tells me that the oil price has further to decline. Too many people are still too anxious to jump aboard the oil train before it leaves the station for the land of higher prices.

And why exactly do I believe the price of oil will further decline? In a word: Iran.

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WNU Editor: It is fitting that this post comes after Russia, Saudi Arabia, Venezuela, and Qatar agreeing to a production freeze. Bottom line .... Iran wants money and they will do it by grabbing oil market share from their competitors. The net result is then predictable .... today's agreement to freeze production will not deter and/or stop other countries from pumping oil.

Iran Now Wants To Be Paid In Euros Instead Of U.S. Dollars For Its Oil Sales

Iran says it wants to settle payments for its new and outstanding oil sales only in euros.

Reuters: Exclusive: Iran wants euro payment for new and outstanding oil sales - source

Iran wants to recover tens of billions of dollars it is owed by India and other buyers of its oil in euros and is billing new crude sales in euros, too, looking to reduce its dependence on the U.S. dollar following last month's sanctions relief.

A source at state-owned National Iranian Oil Co (NIOC) told Reuters that Iran will charge in euros for its recently signed oil contracts with firms including French oil and gas major Total, Spanish refiner Cepsa and Litasco, the trading arm of Russia's Lukoil.

"In our invoices we mention a clause that buyers of our oil will have to pay in euros, considering the exchange rate versus the dollar around the time of delivery," the NIOC source said.

Lukoil and Total declined to comment, while Cepsa did not respond to a request for comment.

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Update #1: Iran confirms intention to replace dollar with euro in oil sales (Trend)
Update #2: Iran wants to dump dollar in crude trade – report (RT)

WNU Editor: It looks like some countries are going to try and take advantage of this Iranian desire to be paid in non-U.S. currencies .... India wants to pay Iran for oil in rupees (Press TV). My prediction .... the Iranians are going to stick with the Euro.

Iran Prepares To 'Flood' The World's Oil Markets

New York Times: Iran Set to Pump More Oil Into Market Glut

HOUSTON — With international sanctions lifted, the Iranian government called on its oil industry Monday to open the taps on production, a move that could add to a global glut of crude that has sent prices into a tailspin.

Benchmark prices edged further below $30 a barrel as traders considered the prospect of new oil flowing into a global market already oversupplied by one million barrels a day, roughly enough to fuel the needs of every driver in a state the size of Pennsylvania or Ohio.

Iranian news organizations quoted Rokneddin Javadi, the deputy oil minister, as saying Iran was ready to add 500,000 barrels a day to its output. But some oil analysts doubt the Iranians can deliver all the production they promise.

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More News On Iran Preparing To Pump Oil Into The World's Markets

Iran Gives Order to Boost Crude Oil Output Amid Global Glut -- Bloomberg
Iran boosts oil output, foreign firms keen to seal deals -- Reuters
Iran's Next Test Is Winning Back Buyers in Biggest Oil Market -- Bloomberg
Oil slumps below $28 to 2003 low as Iran sanctions lifted -- Reuters
Iran's floating oil stockpile for sale at worst time for market -- CNN
Fears of a Flood of Iran Oil Weighs on Crude Sentiment -- WSJ
Oil Trades Near 12-Year Low as Iran Gives Order to Boost Output -- Bloomberg
Oil stays under pressure as Iran orders sharp rise in crude output -- Reuters
Goldman: Iran Won’t Flood Markets With Oil -- Barron's
Iran nuclear deal goes into effect; what happens now? -- CBS
How the lifting of Iran sanctions will hit oil: Experts -- CNBC