Iran says oil price rally offsetting US sanctions impact

Mohammad Baqer Nowbakht, the Head of Iran’s Planning and Budget Organization, said Thursday “Trump thought he could shrink our country’s oil revenues by imposing sanctions on Iran’s oil and cutting its exports, but the rise in oil prices did not let that happen.”

The government also expected to sell 2.4 million barrels per day of oil during the current Iranian calendar year, which started in mid-March, but it exported 2.5 barrels in reality, he said.

Oil prices remain at four-year highs on rising doubts about the capability of Saudi Arabia and other producers to substitute Iran’s crude after the US imposes new sanctions on the country on November 4.

“Notwithstanding all the pressures that the Americans are creating on the oil issue, Iran has its own oil customers, and the work is going on in a way that no problems will arise,” he said.

The US is about to impose new sanctions on Iran’s oil sector on Nov. 4, with the White House saying Saudi King Salman had promised Trump that the kingdom had enough spare capacity to replace Iranian barrels.

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