US grants Iraq 45-day waiver over Iran sanctions to import gas, electricity: US Embassy

An employee turns a valve at the Hammar Mushrif new Degassing Station Facilities site inside the Zubair oil and gas field, north of the southern Iraqi province of Basra. (File/AFP)
Updated 10 November 2018

US grants Iraq 45-day waiver over Iran sanctions to import gas, electricity: US Embassy

  • The current temporary waiver is conditional on Iraq not paying Iran for imports in US dollars
  • Iraq central bank officials said in August that the country’s economy is so closely linked to Iran that Baghdad would ask Washington for exemptions from some of the sanctions

BAGHDAD: Iraq can continue to import natural gas and energy supplies from Iran for a period of 45 days, the United States has said, several days after reimposing sanctions on Tehran’s oil sector.
“The United States has given Iraq a temporary relief from the sanctions for 45 days to continue purchasing natural gas and electricity from Iran,” the US Embassy in Iraq said in a video published on its official Facebook page on Thursday.
“This relief gives Iraq time to start taking steps toward energy independence,” the video said.
Iraq central bank officials said in August that the country’s economy is so closely linked to Iran that Baghdad would ask Washington for exemptions from some of the sanctions.
The current temporary waiver is conditional on Iraq not paying Iran for imports in US dollars.
Sanctions, which had been lifted under a 2015 nuclear deal negotiated by President Barack Obama’s administration and five other world powers, were reimposed on Nov 5.
They cover 50 Iranian banks and subsidiaries and more than 200 persons and vessels in its shipping sector, as well as targeting Tehran’s national airline, Iran Air, and more than 65 of its aircraft.


Oil recoups losses as OPEC, US Fed see robust economy

Updated 14 November 2019

Oil recoups losses as OPEC, US Fed see robust economy

  • US-China trade deal will help remove ‘dark cloud’ over oil, says Barkindo

LONDON: Oil prices reversed early losses on Wednesday after the Organization of the Petroleum Exporting Countries (OPEC) said it saw no signs of global recession and rival US shale oil production could grow by much less than expected in 2020.

Also supporting prices were comments by US Federal Reserve Chair Jerome Powell, who said the US economy would see a “sustained expansion” with the full impact of recent interest rate cuts still to be felt.

Brent crude futures stood roughly flat at around $62 per barrel by 1450 GMT, having fallen by over 1 percent earlier in the day. US West Texas Intermediate crude was at $56 per barrel, up 20 cents or 0.4 percent.

“The baseline outlook remains favorable,” Powell said.

OPEC Secretary-General Mohammad Barkindo said global economic fundamentals remained strong and that he was still confident that the US and China would reach a trade deal.

“It will almost remove that dark cloud that had engulfed the global economy,” Barkindo said, adding it was too early to discuss the output policy of OPEC’s December meeting.

HIGHLIGHT

  • US oil production likely to grow by just 0.3-0.4 million barrels per day next year — or less than half of previous expectations.
  • The prospects for ‘US crude exports had turned bleak after shipping rates jumped last month.’

He also said some US companies were now saying US oil production would grow by just 0.3-0.4 million barrels per day next year — or less than half of previous expectations — reducing the risk of an oil glut next year.

US President Donald Trump said on Tuesday Washington and Beijing were close to finalizing a trade deal, but he fell short of providing a date or venue for the signing ceremony.

“The expectations of an inventory build in the US and uncertainty over the OPEC+ strategy on output cuts and US/China trade deal are weighing on oil prices,” said analysts at ING, including the head of commodity strategy Warren Patterson.

In the US, crude oil inventories were forecast to have risen for a third straight week last week, while refined products inventories likely declined, a preliminary Reuters poll showed on Tuesday.

ANZ analysts said the prospects for US crude exports had turned bleak after shipping rates jumped last month.