Obama pushes Iran sanction to breaking point
Last week, US president Barack Obama tightened the reign even further on Iran oil exports, which may threaten to increase fuel prices even further as well as intensifying tensions already in place. The sanctions, which were passed by congress in December of last year, will enable the US to take further action against countries which do not comply with the reduction of oil import intake from Iran.
Obama's decision was reportedly based on the fact that there are enough non-Iranian oil exporters to see the world through supply and demand, despite the current shortage and staggering fuel prices. Not only is Obama being met with criticism over the coming re-election, but has been blamed for heightening the chance of a nuclear weapons capability in Iran, a fact that Tehran has adamantly denied however.
Despite this, Obama stated: "Nonetheless, there currently appears to be sufficient supply of non-Iranian oil to permit foreign countries to significantly reduce their import of Iranian oil."
In spite of the negativity surrounding the report, the US government have pointed out that many past Iranian export buyers have significantly reduced its spend with the country and were seeking supplies from elsewhere. Oil and gas contract jobs in other locations around the world may strive without competition from Iran or crumble under the pressure to meet expectations in the current tough oil and gas market.
Join 80,000 oil and gas professionals who receive our weekly newsletter.
You may unsubscribe at any time with one click.
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
article may not be suitable for all investors, and if in doubt, an investor should seek advice from
a qualified investment adviser. More
Upcoming OilVoice Training Course
Geomatics for Hydrocarbon Exploration and Production
This module is designed for people interested in the exploration and production of oil and gas who do not have a Geomatics background, specifically in GIS and remote sensing. It provides an introduction to GIS and remote sensing for geoscientists and non-geoscientists, though geoscientists already w...
All OilVoice Training Courses