Page 14 - MEOG Week 48 2021

MEOG NEWS IN BRIEF MEOG

POLICY in Vienna to conclude the negotiations and lift OIL
the [US] sanctions against Iran.”
Macron calls for Robert Malley said: “If Iran chooses – and OPEC+ begins two days of
As the talks restarted, US chief negotiator
constructive Iran talks it really is at this point, I think, an Iranian talks amid oil rout
choice – if they choose not to go back into the
French President Emmanuel Macron on deal, then obviously, we’re going to have to see OPEC and its allies begin two days of
November 30 called on Iranian counterpart other efforts, diplomatic and otherwise, to try meetings on Wednesday to decide whether
Ebrahim Raisi to adopt a “constructive to address Iran’s nuclear ambitions.” to release more oil into the market or restrain
manner” in Iran’s approach to the resumed Apart from Iran, the five remaining JCPOA supply amid an oil price rout and fears the
Vienna talks on finding a pathway to reviving signatories are Britain, France, Germany, Omicron coronavirus variant could weaken
the 2015 nuclear agreement, or JCPOA, China, and Russia. global energy demand.
between Iran and world powers. BNE Oil prices fell to near $70 a barrel on
The two presidents held telephone talks Tuesday from as high as $86 in October,
on November 29. Macron told Raisi that Iran delivers 2 million posting their biggest monthly decline since
Paris’s objectives are “to see Iran return to the outset of the pandemic, as the new variant
full respect for all of its commitments” under barrels of condensate to raised fears of a supply glut.
the accord and “the United States return For November, Brent fell by 16.4%, while
to the agreement,” according to the French Venezuela WTI fell 20.8%, the biggest monthly fall since
presidency. For its part, Raisi’s office quoted March 2020.
the Iranian president as saying that “sending a Venezuela’s state-run firm Petroleos de “The threat to oil demand is genuine,” said
full team to the talks shows Iran’s serious will” Venezuela (PDVSA) has received 2 million Louise Dickson, senior oil markets analyst at
in the negotiations. barrels of condensate from Iran, S&P Global Rystad Energy. “Another wave of lockdowns
The JCPOA places strict limits on Iran’s Platts reports. could result in up to 3 million bpd of oil
nuclear development programme in return The cargo was expected at the Jose terminal demand lost in the first quarter of 2022.”
for sanctions relief. The aim is to ensure the in northeastern Venezuela between Nov. Also pressuring prices, Federal Reserve
programme remains purely peaceful in nature. 27-29, the financial news provider said, citing Chair Jerome Powell said the U.S. central
But the JCPOA has essentially not functioned PDVSA’s internal production reports. bank likely will discuss speeding its reduction
since the US unilaterally walked out of it in PDVSA had received 2 million barrels of bond purchases amid a strong economy
2018 and reinstated crippling US sanctions on of condensate from Iran at end-September and expectations that a surge in inflation will
Tehran despite Iran’s compliance. In response, and another 2.1 million barrels on Oct. 25, persist.
Tehran has gradually stepped up breaches of it added. Venezuela swaps its heavy oil for The Organization of the Petroleum
the deal. Iranian condensate to improve the quality Exporting Countries (OPEC) will meet on
After the first session of discussions in of its tar-like crude. This allows PDVSA to Wednesday after 1300 GMT, followed by
Vienna on November 29, EU envoy Enrique minimize cash payments since the US has a meeting on Thursday of OPEC+, which
Mora, who is chairing the talks, told reporters blocked the company from using US dollars. groups OPEC with allies including Russia.
there was “a sense of urgency in bringing the Like Iran, which is also subject to illegal Several OPEC+ ministers, including from
JCPOA back to life” and added that he felt US sanctions, the South American country Russia and Saudi Arabia, have said there was
“extremely positive.” is using innovative methods to boost its oil no need for a knee-jerk reaction from the
Macron also called on Raisi to “quickly exports. group.
resume cooperation that allows the [UN The sanctions on both nations have But some analysts have suggested OPEC+
atomic] agency to fully carry out its crimped their oil sales in recent years, might put plans to add 400,000 barrels per day
[watchdog] mission”, his office said. spurring Iran to support Venezuela, including (bpd) to supply in January on hold.
Raisi’s office quoted him as urging the through shipping services and fuel swaps. The group was already weighing the effects
French president “to strive with other parties PRESS TV of last week’s announcement by the US and

P14 www. NEWSBASE .com Week 48 01•December•2021