Ankara, Riyadh to increase oil outputs amid looming US sanctions on Iran

ERBIL, Kurdistan Region — With less than a month until the United States targets Iran with energy sanctions, several oil exporters including Turkey and Saudi Arabia are increasing outputs to the global market to counter US control of global crude prices.

“It now appears that only China and Turkey may be willing to risk US retaliation by transacting with Iran,” Jefferies Financial Group stated. Riyadh has also indicated it will buck OPEC and unilaterally increase its exports if market conditions are right. 

The New York-based subsidiary provides investment services to global investors. 

The administration of US President Donald Trump will implement sanctions targeting Iranian oil and gas exports on November 4.

The onset of the sanctions is two-fold: targeting the Iranian regime and more US influence on the market price of oil.

“Brent front-month prices are up 6 percent over the last week as it becomes increasingly apparent that Iranian exports could fall below 1 million bpd in November,” added Jefferies.

Under President Donald Trump the United States, which sits on vast oil reserves, wants Iran's oil exports cut to zero. The result would give other countries a larger say in oil prices through export rates, thus putting Washington in dilemma to increase its outputs or pressure allies and partners to increase theirs. 

Global demand for oil continually has increased amid plummeting prices through the ISIS conflict when the extremist group took control of swathes of oil-rich territory in Iraq and Syria.

Brent crude sold for $35 per barrel at the height of the ISIS in early 2016. As of Friday, it traded around $85 per barrel.

The economies Iraq and the Kurdistan Region are heavily dependent on oil revenues and both the federal and regional governments have worked with officials in Washington to prevent violating the upcoming sanctions.