Business

Is Saudi Arabia Preparing for Iran Sanctions?

Both Saudi Arabia and Iran hiked oil exports in January, but the former’s growing shipments to the United States hinted at price control preparations before sanctions against the latter come into play.

Saudi Arabia boosted its status as the Organization of Petroleum Exporting Countries’ biggest producer by raising exports by 2 percent to 7.507 million barrels a day. Iran exported 2.265 million barrels a day in January, according to a Bloomberg.

However, exports from Saudi Arabia to the U.S. are now at their highest in almost four years, up 25 percent, according to Reuters. Speculation has it that the growth is a response to the forthcoming sanctions against Iran that will be introduced in July and are likely to send oil prices skyward.

Official January data from the Joint Organization Data Initiative also reported Algeria increasing exports by 18 percent, Ecuador hiking them by 41 percent, and Angola raising its numbers by 2.5 percent. Venezuela, Nigeria, and Qatar lowered exports, while Kuwait, the United Arab Emirates, Libya, and Iraq didn’t submit data. OPEC produced a total of 31.42 million barrels a day in February, the most since October 2008.

Reuters reported that since the start of March, Saudi Arabia’s state oil tanker company has booked at least nine carriers capable of carrying 2 million barrels of crude each to the US Gulf.

“Saudi Arabia and the United States are trying to show the Iranians they (the Iranians) will have little flexibility, and they shouldn’t count on the world needing all the oil that Iran produces,” Amy Jaffe, an energy policy expert at Rice University’s Baker Institute, told Reuters.

(Aabha Rathee)

[Editor’s note: the above is a cross post that originally appeared on Wall St. Cheat Sheet.]

Comments (25)

  • TLS
    Posted on March 25, 2012 at 12:49pm

    All we need to do is get the Idiot out and we can an exporter in 5 years ! Keep our money here.

    Report Post »  
  • red_white_blue2
    Posted on March 20, 2012 at 4:01pm

    Iran doesn’t care about the sale of their oil. They care about making a statement.

    Report Post » red_white_blue2  
  • moreteaplease
    Posted on March 20, 2012 at 1:42pm

    I’m thinking that S.A. stands to make a lot of money when the ppb punches a whole in the sky this summer and now with Obama signing this new E.O.?

    It just feels like a trap is about to be sprung on us or something.

    Report Post » moreteaplease  
  • Atokaite
    Posted on March 20, 2012 at 8:25am

    Buried in the report was the Iranian Oil UN embargos set for this summer.
    A repeat of the 1973 Oil Carter debacle is due, even if in a lessor form.
    The World is awash in oil. Proven reserves, speculative reserves, new techniques, and a an Old USSR Bio/Heat/Oil creation theory being proven out, make oil and the flow thereof a point of discussion. The very fact that oil os available, makes the Economists of the Soros Ilk salvitate.
    We will be awash in speculation intensely this summer, along with OWS, SEIU, ACORN and other acronymns.
    Semper Fi

    Report Post » Atokaite  
  • Chuck Stein
    Posted on March 20, 2012 at 2:30am

    Maybe the price of oil is going up and Saudi Arabia wants to make more money. A radical concept, to be sure.

    Report Post »  
    • Ailene Wright
      Posted on March 20, 2012 at 9:34am

      It’s a win,win situation for Saudi Arabia once again. They funded the ideology in their schools against us and fomented the terrorism that brought about 9/11 and we want to give them more money. Isn’t that just great? We can’t drill for oil in this country and keep the money in the USA. Why oh why do we want to be dependent on countries that hate us instead of being energy independent? What sense does that make?

      Report Post »  
    • Chuck Stein
      Posted on March 20, 2012 at 3:14pm

      “What sense does that make?” Since when do government policies have to make sense?

      Report Post »  
  • Elena2010
    Posted on March 20, 2012 at 12:27am

    Saudi Arabia needs to take out Iran’s oil refineries and interdict petrol shipments to Iran.

    That topples Iran‘s gov’t fm within w/only a few dead bodies fm outside intervention. It puts a stop to nuclear programs in Iran as they will have to deal w/their own populace.

    Saudi Arabia has as much to fear fm the Iranians as does Israel. The Shi’as on Iran despise the Sunnis of the royal household.

    Report Post » Elena2010  
  • Delores at CH WV
    Posted on March 20, 2012 at 12:13am

    Are the Saudis” ready to fight Russian troops on the ground in Syria? Or, do they think they expect Obama to put American troops on the ground there? I don’t think so.

    Report Post »  
  • Micmac
    Posted on March 19, 2012 at 11:59pm

    I think the Middle East countries are also leery of Iran. This is really a message to Iran from its neighbors to straighten up.

    NoBama 2012

    Report Post »  
  • Micmac
    Posted on March 19, 2012 at 11:52pm

    I‘ve been saying it for over 3 years and I’ll say it again… NoBama doesn’t care about the poor, you, or anyone/anything except his agenda he had before he took office. His players are in place and they just move forward, only stopping to take care of immediate needs. His form of socialism is falling into place at a pace that I am sure he is satisfied with if he can win re-election. God I hope not. My fear is if RINORomney wins he will not just nix everything NoBama has screwed up and try to work with it.

    NoBama 2012

    Report Post »  
    • oldguy49
      Posted on March 19, 2012 at 11:58pm

      anyone that has been in office for more than 2 terms needs to be voted out…not just obama……….they are all complancent !!!!!!!!!!

      Report Post »  
    • CatB
      Posted on March 20, 2012 at 4:03am

      http://www.youtube.com/watch?v=HlTxGHn4sH4

      All according to plan .. just his timing might be a little off … will people vote for Obama with $5 gas? He has to get the prices down … for NOW .. then they can skyrocket and he will be happy!

      Report Post »  
    • 1TrueOne55
      Posted on March 20, 2012 at 4:37am

      Is it any wonder that this past Friday he signed an Executive Order changing his powers during a National Defense Emergency and created a new Agency made up of his followers to make sure his policies are followed? His new E/O also loosens the definition of National Defense Emergency.

      So if OWS riots in the streets it will bring the roof down on the pressure cooker. Remember: BOTTOM UP – TOP DOWN – INSIDE OUT, Saul Alinsky at work in the White House.

      Report Post » 1TrueOne55  
  • KidCharlemagne
    Posted on March 19, 2012 at 11:40pm

    It remains to be seen how successful Iran will be at going off of the dollar tomorrow:

    ——————————————
    “Iran holds the fourth largest oil reserves in the world and the second largest gas reserves. The two main oil trading bourse’s in the world are the New York Mercantile exchange (NYMEX) and the Intercontinental Exchange (ICE) in London.

    Oil is of course priced in dollars. However, Iran has established an oil exchange, known as the International Oil Bourse (IOB). It is located on Kish Island, just off the coast of Iran, and is designated as a free trade zone by the Iranian government.”
    http://www.tehrantimes.com/index.php/economy-and-business/1041-irans-oil-bourse-a-new-pressure-on-us-dollar

    Report Post »  
    • Micmac
      Posted on March 20, 2012 at 12:08am

      This will be interesting to see how countries line up. The fear I have is that the current admin is doing everything possible to take the air out of the fiat dollar.

      NoBama 2012

      Report Post »  
  • DSTSS2010
    Posted on March 19, 2012 at 11:29pm

    Unfortunately, therer are those who will use this situation to greatly increase their profit. Even going to the extreme of stiring the pot for fun and profit.

    Report Post » DSTSS2010  
  • Detroit paperboy
    Posted on March 19, 2012 at 11:19pm

    Obama is hurting the poor the most…. Kind of ironic in a way… They’re his biggest supporters !!!

    Report Post »  
    • spfoam1
      Posted on March 19, 2012 at 11:30pm

      Yes, his biggest supporters are the poor. Stalin called them useful idiots and then slaughtered them once he was in power. Considering the effect Obamas policies have on the poor it is difficult to even imagine that he has any more compassion for the poor than Stalin did.

      Report Post »  
    • allyoucaneatbaby
      Posted on March 20, 2012 at 6:22am

      Does he do too much for the poor or too little?

      Report Post »  
  • spfoam1
    Posted on March 19, 2012 at 11:12pm

    If we had a real president the United States would end the limitations on our own oil production, which would not only send a message to Iran it would lower the price of fuel here immediately. Obama prefers to force US dependence on other countries for our energy needs, and prefers to send our money to Arab countries who use that money against us in every imaginable way.

    Report Post »  
  • Southerner01
    Posted on March 19, 2012 at 11:11pm

    And the Keystone XL Pipeline lacks approval, meaning the Canadian oil will be shipped to China. How can anyone not see that is a disaster?

    Report Post »  
  • Darmok and Jalad at Tanagra
    Posted on March 19, 2012 at 11:09pm

    I heard the kid in the well is stocking up on oreos and goats milk. He thinks this might be bad.

    Report Post » Darmok and Jalad at Tanagra  

Sign In To Post Comments! Sign In

Sign Up For Our Newsletter!

Glenn Beck Radio

Listen to Glenn Beck 24/7 Listen Now
Restoring Love