US to sanction Iranian-oil-purchasing countries and Saudi Arabia to offset the shortage

US President Donald Trump
US President Donald Trump

US President Donald Trump said on Monday that Saudi Arabia and other member countries of the Organization of the Petroleum Exporting Countries (OPEC) are capable of controlling the oil market while ending exemptions that allow some countries to purchase the Iranian oil.

"Saudi Arabia and others in OPEC will more than make up the Oil Flow difference in our now Full Sanctions on Iranian Oil. Iran is being given VERY BAD advice by John Kery and people who helped him lead the U.S. into the very bad Iran Nuclear Deal. Big violation of Logan Act?" Trump tweeted via his official Tweeter account today.

The US president renewed the attack on former US Secretary of State JohnKerry and those who helped him lead the United States to a nuclear deal withIran, which he described as "very bad", referring to the law thatbans citizens who are not authorized to negotiate with foreign governments witha dispute with the United States of America.

Trump administration to sanctionIranian-oil-purchasing countries

The Trump administration said on Monday that the United States, Saudi Arabia, and the United Arab Emirates are committed to securing a balance in the global oil market. The Trump administration also confirmed that US Donald Trump decided not to renew Iran's oil sanctions exemptions when it is due in next May.

It is noted that Trump administration imposed economic sanctions on Tehran during two phases (August and November 2018), including several sectors; the oil sector, following the unilateral withdrawal of Washington from the nuclear agreement, known as P5+1, concluded in 2015 between Iran and six major countries, namely: United States, Britain, France, Russia, China, along with Germany.

Saudi Arabia to offset any possible shortagein the oil market

On its side, Saudi Arabia has already confirmed its readiness to increaseoil production to offset the potential loss if the United States ends Iran'ssanctions exemptions, but not before it has an impact on the market.

Oil prices are quickly affectedOilprices jumped on Monday after the United States appeared to be announcing thatall Iranian oil buyers would be obliged to end their imports or be subject tosanctions. Brent crude rose by 3.3%, reaching $74.31 a barrel, itshighest level since November 1, before falling to $73.63 a barrel with a riseof 2.3% above the last close. US WTI crudealso rose by 2.9%, reaching $65.87 a barrel, their highest level since Oct. 31.The price was $65.50 a barrel with an increase of 2.3% above the previoussettlement.

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