EIA expects anti-Iran oil sanctions to be prolonged

EIA expects anti-Iran oil sanctions to be prolonged

The U.S. Energy Information Administration (EIA) forecasts the U.S. oil sanctions imposed on Ian will remain in place until 2020.

"EIA assumes that US sanctions on Iranian oil exports will remain in place through the end of the forecast period," the agency said Tuesday. 

"Furthermore, the current forecast reflects an expectation that reduction-exemption waivers issued to eight countries to continue buying Iranian oil will not be extended past May 2019," S&P Global cited the report as saying.

 According to the EIA, Iranian crude oil output has fallen by more than 1 million b/d since May 2018.

Oil production in Iran averaged 2.8 million b/d in December, down 100,000 b/d from November when U.S. sanctions on Iranian crude exports were reimposed, with top buyers of Iranian crude getting temporary waivers.