Not constructive: Europe forced to wait for Iranian oil exports
Europe’s energy crisis could ease if a deal is finally reached to allow Iran to resume exporting its vast oil reserves to world markets, analysts say.
Talks to ease sanctions on Iran in return for a closer look at its nuclear program have moved closer to a settlement, with French President Emmanuel Macron saying on Thursday a deal could be reached within days.
Any agreement to resume the 2015 deal would allow Iran to raise vital funds through its main export, oil, and fill the void when the European embargo on Russian crude comes into force in December, said OANDA market analyst Craig Erlam.
“We may not see immediate trade diversion, but Iran could ramp up production quickly and has massive reserves that could ease some of the pressure on Europe in the coming months,” he said. -he declares.
Iran sent its latest response to the negotiations on Friday with undisclosed demands that have been criticized by the US government.
After months of indirect talks, efforts to resume the deal are winding down with the EU brokering the talks, insisting the current offer is the last on the table.
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“We are studying it and will respond through the EU, but unfortunately it is not constructive,” the US State Department said, without giving further details.
Tehran’s response came as G7 finance ministers discussed capping Russian oil export prices, which could further reduce global oil supply.
Iran and Russia, both under international sanctions, have been competing to sell cut-price crude to Asian markets after being cut off from other key markets.
The trade involved a “ghost” fleet of aging tankers who took advantage of the higher tariffs on offer to displace sanctioned oil.
Analysts are divided on the impact on tanker prices if Iran returns to unauthorized trading, with the additional oil being shipped weighed against likely shorter voyages and the return of Iran’s sizable VLCC fleet to the market.
Erlam said an Iran deal could lower the price of oil – but any lasting impact depends on the decisions of the OPEC+ countries when they meet on Monday and discuss possible production cuts.
Brent crude prices were up nearly 3% in trading Friday at $95.06 a barrel after falling from a 13-year high of over $120 in March due to supply issues following the Russian invasion of Ukraine.