US zero exports target impossible in tight market: Iran

A senior Iranian oil official says the United States will fail to drive Iranian oil exports down to zero as the market is already tight and rival producers are not able to make up the shortfall.

According to Press TV, Iran's OPEC Governor, Hossein Kazempour Ardebili, told Reuters on Friday that a "supply shortage" showed that Washington would not be able to meet its zero exports target.

"There is no spare capacity anywhere," he added.

The US administration of President Donald Trump is seeking to cut Iran's oil exports completely by November 4 as it re-imposes sanctions on Tehran.

It is also encouraging other oil producers such as Saudi Arabia, Russia and other member states of the Organization of the Petroleum Exporting Countries (OPEC) to pump more to meet the shortfall.

The US National Security Adviser John Bolton said last month that the United States is exerting “maximum pressure” on the government of Iran to change its behavior, adding that Washington is prepared to use sanctions to drive Iranian oil exports down to zero.

“Regime change in Iran is not American policy, but what we want is massive change in the regime’s behavior,” Bolton said, adding, “We are going to do other things to put pressure on Iran as well, beyond economic sanctions."

An expected loss of Iranian oil, declining supply from another OPEC member, Venezuela, and other outages are boosting crude prices, which this week hit $80 a barrel, the highest since May.

President Trump withdrew Washington in May from the landmark Iran nuclear agreement, officially known as the Joint Comprehensive Plan of Action (JCPOA) reached between Iran and the 5+1 group of countries in 2015, and decided to re-impose unilateral sanctions against Tehran.

ME