BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

IF you are a Platts Market Center subscriber, to reset your password go to the�Platts Market Center to reset your password.

In this list
Oil

APPEC: IEA sees 'substantial' supply impact from Iran sanctions: Sadamori

LNG | Tankers

Any relief for soaring LNG tanker rates as global supply set to jump?

Oil

Platts Rigs and Drilling Analytical Report (RADAR)

Agriculture | Electric Power | Natural Gas (North American) | Oil | Metals | Petrochemicals

North American Digital Commodities Summit, 2nd Annual

Oil

Japanese refiners working to resume Iran oil loadings: PAJ chief

APPEC: IEA sees 'substantial' supply impact from Iran sanctions: Sadamori

Singapore — The oil market is currently in balance but might face challenges towards the end of the year as US sanctions on Iran could take a toll on supplies, Keisuke Sadamori, International Energy Agency director for energy markets and security said Tuesday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

"Now, the market is in balance," Sadamori said in an interview with S&P Global Platts Tuesday on the sidelines of the Asia Pacific Petroleum Conference in Singapore.

"Going forward, we [will] have impact from sanctions against Iranian exports, continuing decline in Venezuelan production and possible disruptions [in supplies] from countries like Libya. The market balance towards the end of this year may become challenging," Sadamori said. "If that happens, it will require other producers to increase production."

Asked about IEA's latest view on the potential implication on the market when Iranian sanctions snap back on November 5, Sadamori said: "All we can say at this moment is that the impact will be larger than the last one, which reduced 1.2 million b/d. The impact on the market will be really substantial on the supply side."

Sadamori said that Saudi Arabia, the UAE, Kuwait and Iraq had spare capacity, but added: "We cannot be sure how quickly and to what extent those numbers in spare capacity will actually be deployed, corresponding to the market requirement."

Sadamori added that the IEA had estimated spare supply capacity of Saudi Arabia at 1.6 million b/d, the UAE at 0.2 million b/d, Kuwait at 0.1 million b/d and Iraq at 0.15 million b/d.

"We observe the market when there is a serious supply disruption or supply shortage, which the oil market itself cannot cope with. Then our member countries would discuss whether to use [releasing petroleum reserves] mechanism," Sadamori said.

He said that oil producers who are part of the OPEC/non-OPEC production cut agreement should respond in the face of a supply shortage.

"Those producers would have to respond to the market demand and increase the production first. So of course our belief is that market forces based on price signals should work first," Sadamori said.

US President Donald Trump said on May 8 that the US would withdraw from the Iran nuclear deal and re-impose sanctions that have been frozen since January 2016 as part of the Joint Comprehensive Plan of Action.

-- Takeo Kumagai, takeo.kumagai@spglobal.com

-- Edited by Geetha Narayanasamy, newsdesk@spglobal.com