Replacing Iran's Oil: US Seeks Alternative Export Sources for Allies
Following the withdrawal of the US from the Joint Comprehensive Plan of Action (JCPOA) agreement with Iran, Washington sought to reinstate sanctions against Iran that will enter force at the beginning of November. Earlier, the US announced its aim to reduce Iranian oil exports to zero.
The administration of US President Donald Trump is seeking alternative oil sources that could replace Iranian resources for its allies, the Financial Times (FT) reported, citing a source in the White House.
As noted by FT on Thursday, sanctions against Iran that were in force until the signing of the 2015 nuclear agreement had limited imports of Iranian oil. However, a range of US allies were still able to take advantage of a weakened sanction regime and continue purchasing Iranian resources. In particular, South Korea, India and Japan could have done that.
India, which is one of the key oil importers from Iran, is already searching for opportunities to diversify exports, and it has substantially reduced the volume of oil purchases from Iran in September-October, Reuters reported.
The Energy Ministry of South Korea also made a resolution to opt for Saudi Arabian and Iraqi oil.
Earlier in September, US Energy Minister Rick Perry visited Moscow where he met with his Russian counterpart, Alexander Novak. According to Novak, during the meeting, the ministers discussed global energy markets, the work of Russian and American companies in Russia and US projects in the developing world. Moreover, the issue of an investment fund created by Russia and the US was raised.
Later, Novak met with Saudi Arabia's Energy Minister Khalid al-Falih in Moscow. The minister discussed the current situation in the market, as well as the possibility of bilateral cooperation.
After the withdrawal of the US from the JCPOA agreement with Iran, the US sought to reinstate sanctions against Iran.
According to International Energy Agency, the country had exported 1.9 million barrels per day in July, which was 500,000 barrels lower than in May.
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