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Iran's crude oil and condensate exports in August are set to drop below 70 million barrels for the first time since April 2017, well ahead of the Nov. 4 start date for a second round of U.S. economic sanctions.
The United States has asked buyers of Iranian oil to cut imports to zero starting in November to force Tehran to negotiate a new nuclear agreement and to curb its influence in the Middle East.
The total volume of crude and condensate, an ultra-light oil produced from natural gas fields, to load in Iran this month is estimated at 64 million barrels, or 2.06 million barrels per day (bpd), versus a peak of 92.8 million barrels, or 3.09 million bpd, in April, preliminary trade flows data on Thomson Reuters Eikon showed.
The National Iranian Oil Co has slashed its crude prices to keep buyer interest amid the August export drop. It has set the official selling price (OSP) for Iranian Heavy crude for September loading at the biggest discount since 2004, according to Reuters and trade data.
Pressures mounted on Iranian President Hassan Rouhani on Tuesday as lawmakers summoned him to answer questions on weak economic growth and rising prices, but the parliament was not convinced by his answers and referred the case to the judiciary.Defending his cabinet's performance, Rouhani said the economic troubles only began when Washington reimposed sanctions on Tehran, but many lawmakers were not satisfied with the answer according to vote results at the end of the session.If the majority of lawmakers are not convinced with the president’s answers, they can see it as "a breach of law" and refer the case to the judiciary.The lawmakers have the power to impeach the president, and vote on his lack of competence, but such a motion is not before parliament at this stage.Rouhani vows to defeat 'anti-Iranian' officials in the White HouseOn Sunday, Iran's parliament sacked the minister of economic affairs and finance due to the sharp fall in the rial currency and the deterioration in the economic situation. In early August Iranian lawmakers voted out the minister of labour and last month Rouhani replaced the head of the central bank.Rouhani, a pragmatist who reduced tension with the West by striking a nuclear deal with world powers in 2015, now himself faces a backlash from hardliners after U.S. President Donald Trump pulled out of the pact in May.Rouhani said anti-government protests in early January encouraged Trump to withdraw from the nuclear deal as he was hopeful that economic hardship would stir more unrest in Iran.The demonstrations, which began over economic hardship and high prices and included chants slogans against the government and Supreme Leader Ayatollah Ali Khamenei, spread to more than 80 cities and towns and resulted in 25 deaths.US vows to fight Iran world court action"The protests tempted Trump to withdraw from the nuclear deal," he said, asking lawmakers to support his cabinet and not add to anti-government sentiment.Although the economic problems were critical, Rouhani said: "More important than that is that many people have lost their faith in the future of the Islamic Republic and are in doubt about its power."LAWMAKERS DEMAND ANSWERSThe nuclear deal had lifted sanctions on Tehran in return for curbs on its nuclear programme.But Washington imposed a new round of sanctions in August targeting Iran’s trade in gold and other precious metals, its purchases of U.S. dollars and its car industry. A new round of sanctions to be imposed in November targets Iranian oil sales.Iran expects remaining nuclear deal partners to act faster to preserve it: Rouhani"I want to assure the Iranian nation that we will not allow the U.S. plot against the Islamic Republic to succeed," Rouhani said told parliament in a session that was broadcast live on state television."We will not let this bunch of anti-Iranians in the White House be able to plot against us."The lawmakers asked Rouhani about the government's failure in tackling the rise of unemployment, slow economic growth, and the fall of the country's currency rial - as well as revenue-sapping cross-border smuggling operations.Rouhani said his government had asked the powerful Revolutionary Guards to help them in tackling the smuggling.Iran shuts down scores of military-run companiesLawmakers also asked why the government had not adopted reforms in the financial sector and foreign exchange market, and sought an explanation why, more than two years after the nuclear deal, Iranian banks still had only limited access to global financial services.The parliament only found Rouhani's answer about the banking satisfactory and referred the rest to the hardline judiciary. Iran says it has full control of Gulf and US navy does not belong thereIran and Syria sign deal for military cooperation
Iran’s parliament blames Rouhani for economic troubles, refers him to judiciary
Iran is currently the third-largest producer among the members of the Organization of the Petroleum Exporting Countries and benchmark oil futures traded in London have surged to their highest since June in anticipation of the loss of Iranian supply.
Imports by its key customers have all dropped in August as some buyers, banks and insurance companies have already suspended dealings in Iranian oil.
Loadings bound for top customer China are set to fall to 18.4 million barrels in August, from 24 million barrels in July which was its highest monthly volume this year, the data showed.
China has switched to using Iranian tankers to deliver the country's crude since July to side-step the sanctions and sustain Iranian oil imports until at least October.
Iran will overcome newly reimposed U.S. measures against Tehran, sanctions that will only serve to unify the nation, President Hassan Rouhani said on Tuesday.In a speech broadcast live on state television, Rouhani said his government would overcome the economic challenges and show "the anti-Iranian officials in the White House" that the sanctions would fail."The economic problems are critical, but more important than that is that many people have lost their faith in the future of the Islamic Republic and are in doubt about its power," Rouhani said, while answering lawmakers' questions about his handling of the economy, amid rising prices and unemployment."We are not afraid of America or the economic problems," he said. "We will overcome the troubles." US vows to fight Iran world court actionWorld Court hears Iran lawsuit to have US sanctions liftedIran shuts down scores of military-run companiesIran says it has full control of Gulf and US navy does not belong there
Rouhani vows to defeat 'anti-Iranian' officials in the White House
The volume of oil heading to India is 8.2 million barrels, down from more than 20 million barrels in each month since April.
Exports to India could still rise as the destination for about 11 million barrels of Iranian oil loading this month are yet to be identified.
Japan-bound loadings have been scaled back to 3.4 million barrels in August, down for a second straight month. Japanese refiners are expected to load their last Iranian oil by mid-September so they will arrive in Japan before November.
Iran has not loaded any oil bound for South Korea since July.
Cargoes loading for Europe have been falling from a peak of 22.2 million barrels in March down to about 12 million barrels in August, the data showed.
European companies such as France's Total are walking away from Iran for fear of triggering U.S. sanctions although Iran's president has urged the remaining signatories to its 2015 nuclear agreement to save the pact.
The United States withdrew from the agreement in May and ordered the renewed sanctions, the first of which went into effect on Aug. 7.