US oil ban reversal not to harm Iran: NIOC chief
Iran says it will suffer the least among oil producers from the US decision to lift a 40-year ban on exporting crude oil.
“With the liberation of crude oil and even gas condensate exports in the US, Iran will experience the least harm,” the chief executive of National Iranian Oil Company (NIOC), Rokneddin Javadi, was quoted by Mehr news agency as saying.
He said that oil-rich regions like North Sea, Mexico deepwaters, Asia deepwaters and even such regions in Africa are set to be harmed by the US oil decision.
“But naturally, the market will be oversupplied and at least the US and Far East markets will be affected immediately,” he added.
Javadi also said that US’s future oil supply on the market will force countries selling oil at high prices to “limit their oil production and supply.”
Earlier this month, Congress voted to repeal the 40-year-old ban on US crude oil exports, imposed after the Arab oil embargo of the early 1970s that sent petrol prices soaring and gave rise to runaway inflation.
Russia, a top oil producer, has said that the US decision will not affect the global oil market.
The US Energy Information Administration said recently that the United States consumed around 19 million barrels per day (b/d) of oil products in 2014, a fifth of the world’s total.
No plan for oil discount
Javadi also dismissed media speculation of Iran’s plan to slash its oil sale price after international sanctions are lifted on the country.
“NIOC has no plan for selling oil at low prices or giving special discounts to customers in the market,” he said.
Iran is expected to add 500,000 b/d to its oil exports after the sanctions are lifted. It will continue to raise exports to 1 mb/d six months after.
Iran exported 2.3 mb/d-2.5 mb/d of oil before US and European sanctions targeting its energy sector cut the sales by half in 2012. Saudi Arabia, Russia and Iraq ramped up production to replace the Iranian oil.
Iranian officials have urged OPEC members to make room for Iranian oil when the country returns to the pre-sanction export levels.
There is currently an oil glut in the market because of oversupply by Saudi Arabia and non-OPEC members but Iran says it is determined to redeem its market share regardless of the situation.
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