"Some believe that in coming days we will face a sharp rise in the price of oil," Cole Latimer, energy analyst told ILNA News agency in an interview.
He was noting that the US failed to extend oil breaks and added, “The U.S. is trying to compensate Iran's oil shortages and if Russia and OPEC fail to do their jobs, Washington is experiencing greater pressure.”
Cole Latimer who works at Fairfax Media expressed that United State claims that Saudi Arabia can compensate Iran's oil shortages but according to statistics, it can produce about 1.3 million barrels of oil per day, so how much can it compensate Iran’ s oil shortage and how much Iran oil consumers prefer Saudi Arabia is not obvious.
“U.S cannot bring Iran’s oil exports to zero, because China is still determined to continue buying oil from Iran and On the other hand, the American pressure on Beijing not to buy oil from Iran will lead to an increase differences between the US and China.
China’s oil imports from Iran have hit a seven-month high in March ahead of Washington’s termination of sanctions waivers for major buyers of crude from the Islamic Republic.
The Trump administration last week said it will not renew exemptions granted last year to buyers of Iranian oil, a more stringent than expected decision that caught several key importers who have been pleading with Washington to continue buying Iranian oil sanctions-free.
The White House said that its move is meant to “bring Iran’s oil exports to zero” and deny the government “its principal source of revenue.”
US Secretary of State Mike Pompeo told a press conference on Monday that Saudi Arabia and the UAE had agreed to “ensure an appropriate supply (of oil) for the markets” in order to make up for the loss of Iranian oil in the global market.
Iran’s Minister of Petroleum Bijan Zangeneh has said Washington will never be able to achieve its “dream” of cutting Tehran’s oil exports to “zero.” Zangeneh also accused Saudi Arabia and the UAE of exaggerating their ability to replace Iran’s oil in the wake of US measure.