Iran: ‘Impossible’ to remove oil from market this year

Iran has taken the necessary measures to face the oil embargo which is to be imposed by the US, Iranian government spokesman Mohammad Baqir Nobkhat said yesterday, according to Iranian media outlets.

He described what his country is currently going through as a prelude to an economic war before the embargo goes into effect, adding that Iranian oil exports have increased by 21 per cent in the past three months compared to the same period last year.

Nobkhat revealed that his government is creating an emergency budget which will be discussed by parliament along with the public budget.

The US Treasury Department recently announced that the country would resume its efforts to curb Iranian oil exports and urge other countries to reduce their purchases of Iranian oil.

To this end, American asked Saudi Arabia to increase its oil production. Iran criticised Saudi Arabia’s plan to raise oil output and pressure from the United States on Riyadh do so, saying this was in breach of OPEC’s decision last week and belittled the producer group.

Read: OPEC strives for deal to raise oil output as Iran resists

However an official told the semi-official Tasnim news agency that “Iran exports a total of 2.5 million barrels per day of crude and condensate and eliminating it easily and in a period of a few months is impossible.”

The Trump administration is moving to dismantle the sanctions relief that was granted to Iran under the 2015 nuclear deal from which President Donald Trump withdrew in May.