FOR IMMEDIATE RELEASE
February 13, 2014
Contact: Nathan Carleton, [email protected]
Phone: (212) 554-3296
UANI Issues Statement Regarding Rising Iranian Oil Exports
Obama Administration in November: "Iran's Oil Exports will Remain Steady at their Current Level of Around 1 Million Barrels"
[Click here to view a graph showing Iran's oil exports over the past four months.]
When the Geneva agreement was signed in November, the Obama administration stated that: "Iran's oil exports will remain steady at their current level of around 1 million barrels per day." This has not been the case.
Iran's oil exports have already increased more than 70%, from historically low levels of 761,000 barrels per day in October, to 1.32 million barrels in January. Had oil sanctions remained in place and been fully enforced, Iran's oil exports could have fallen to a level as low as 500,000 barrels by the end of 2014.
It is clear that the Geneva negotiations and the signing of the interim agreement significantly altered the outlook for Iran's oil market and overall economy, due to both the easing of restrictions and the reduced risks for purchasers and traders. Now that the agreement is being implemented, Iran's oil exports are in position to increase even further as tanker insurance provisions are relaxed and shipping costs reduced.
These numbers also cast doubt on the accuracy of the administration's estimates for sanctions relief. The $6 or $7 billion estimate does not take into account the tens of billions of dollars Iran will reap from increased oil sales.
It is becoming more and more evident that the Geneva deal provided Iran with disproportionate sanctions relief, in exchange for far less significant concessions regarding its nuclear program.
On January 28, Ambassador Wallace testified before the U.S. House Foreign Affairs Committee, regarding the implementation of the Geneva agreement. Said Ambassador Wallace: "The White House estimates that Iran stands to receive $6 billion to $7 billion in sanctions relief. The true value of the sanctions relief is well more $20 billion. Just calculate the increase in oil sales lest there be any doubt. Now, we believe there will be far less pressure for Iran to actually make material concessions on its nuclear program."
Click here to view UANI's Geneva Interim Nuclear Agreement Tracker.
Click here to view a transcript of Ambassador Wallace's January 28 testimony.