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US oil companies to make billions out of tougher sanctions on Iran

April 26, 2019 at 12:05 pm

A general view of the Port of Kharg Island Oil Terminal, in the Persian Gulf on March 12, 2017. [Fatemeh Bahrami – Anadolu Agency]

The market value of US drilling companies has increased by billions of dollars, after Washington announced that it will not renew sanctions waivers granted to eight countries allowing them to import oil from Iran. The companies, which are concentrated in states such as Texas, Oklahoma and California, look like being the main winners from tougher US sanctions on Iran, Bloomberg has reported.

The US decision has also increased the profits of US energy companies that are among the biggest beneficiaries of sanctions aimed at crippling Iran and pushing it to the negotiating table.

According to Bloomberg, Brent contracts jumped to a six-month high with Washington’s announcement that it will not renew waivers given to Turkey, Italy, Greece, China, India, Japan, South Korea and Taiwan. The waivers expire in May.

These countries will have to look for alternative sources of crude oil, which may have implications for the OPEC+ agreement to reduce production, which ends at the beginning of July.

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