Oil prices down after Pompeo outlines plan to get nations off Iranian oil

Speaking in India this week, Secretary of State Mike Pompeo shared plans to wean nations off Iranian oil before the U.S. reimposes sanctions on Iran in November.

U.S. Secretary of State Mike Pompeo, shown here in July, spoke about U.S. plans to get other nations off Iranian oil while in India this week. File Photo by Mike Theiler/UPI | License Photo
U.S. Secretary of State Mike Pompeo, shown here in July, spoke about U.S. plans to get other nations off Iranian oil while in India this week. File Photo by Mike Theiler/UPI | License Photo

The sanctions, which Iran has challenged in the International Court of Justice, stem from President Donald Trump’s decision to pull the U.S. out of the Joint Comprehensive Plan of Action, a 2015 deal that included a pledge from Iran to shed its supply of medium-enriched uranium, among other measures.

Pompeo said Thursday in New Delhi that come November, when Trump has said the sanctions will “ratchet up to yet another level,” nations choosing to continue accepting imports of Iranian oil will face U.S. sanctions themselves.

“We have told the Indians consistently, as we have told every nation, that on November 4th the sanctions with respect to Iranian crude oil will be enforced, and that we will consider waivers where appropriate, but that it is our expectation that the purchases of Iranian crude oil will go to zero from every country, or sanctions will be imposed,” Pompeo said. “So we’ll work with the Indians. We committed that we would do that.”

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An analysis Thursday from S&P Global Platts showed Indian oil imports from Iran declined 65 percent from July to August. Iran is one of the country’s top three crude providers.

There may be some wiggle room for nations to try to divest from Iranian imports, Pompeo said.

“Many countries are in a place where they — it takes a little bit of time to unwind, and we’ll work with them, I am sure, to find an outcome that makes sense,” he said.

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The price of West Texas Intermediate, the U.S. benchmark for the price of oil, fell 0.29 percent to $67.48 by 11:54 Friday morning. The global benchmark, Brent crude, was down 0.14 percent to $76.39.

Stateside, Ohio increased its production of shale natural gas 50 percent year-over-year in the second quarter, S&P reported. Three counties along the Ohio River in the southeastern part of the state made up 75 percent of the second-quarter production.

BySam Howard