2nd November, 2018
Turkey has not received written notification regarding any waiver on buying Iranian oil after the U.S. reimposes sanctions on Tehran but it has heard rumours on the issue, Turkish Energy Minister, Berat Albayrak, said on Friday.
The U.S. Government has agreed to let eight countries, including close allies South Korea and Japan, as well as India, to keep buying Iranian oil after it reimposes sanctions on Tehran from next week, Bloomberg reported on Friday, citing a U.S. official.
Iran’s biggest oil customers – all in Asia – have been seeking sanctions waivers to allow them to still buy some of its oil.
Bloomberg reported that close U.S. allies South Korea and Japan had received waivers along with India, which relied heavily on supplies from Iran, adding that a list of all countries getting waivers was expected to be released officially on Monday.
A Chinese official told Reuters that discussions with the U.S. Government were ongoing and that a result was expected in the next couple of days.
Clayton Allen of Height Securities said in a note on Friday that “we think U.S. President, Donal Trump, will agree to China importing some volumes, similar to the treatment that India and South Korea receive,”
However, analysts said any potential Iranian oil sanction waivers would likely only be temporary.
“The U.S. may use waivers to slow-walk implementation, but these will not apply indefinitely,” Allen said.
Goldman Sachs said it expects Iran’s crude oil exports to fall to 1.15 million barrels per day (bpd) by the end of the year, down from around 2.5 million bpd in mid-2018.