How Ending Iran Waivers Affects the OPEC+ Oil Cuts
https://www.rigzone.com/news/wire/how_ending_iran_waivers_affects_the_opec_oil_cuts-22-apr-2019-158659-article/...3. What’s the effect on the market?
Curbing Iran’s production capabilities “is going to make an already tight market even tighter, especially with supply risks in Libya and Venezuela,†Petromatrix Managing Director Olivier Jakob wrote in a report. Recent battles in Libya put the that country’s oil exports at risk, while Venezuelan exports have slumped amid a political crisis.
4. Who can make up for missing Iranian barrels?
The U.S. said it secured commitments from producers including Saudi Arabia and the United Arab Emirates to offset the loss of Iran’s crude. The Saudis will coordinate with fellow producers to keep adequate supplies available to consumers while ensuring the oil market “does not go out of balance,†Energy Minister Khalid Al-Falih said after the U.S. announcement.
Saudi Arabia and the U.A.E. are ready to boost output to offset any drop in output from Iran, according to people with knowledge of the matter. They can increase their combined production by about 1.5 million barrels a day within a short period, they said. The additional oil would more than compensate for losses from Iran, which shipped about 1.1 million barrels a day of crude and condensate in the first half of April, tanker-tracking data compiled by Bloomberg show....
