Some countries aim to hurt Iran's oil market

Iran is at risk of losing global market share to other producers because of US sanctions

Some countries aim to hurt Iran's oil market

Iranian Oil Minister Bijan Zanganeh said Wednesday that some countries are attempting to saturate the global oil market and damage Iran in the process, according to Iran's Mehr news agency. 

Zanganeh did not furnish the names of the countries, however, recent developments show that Iran is at risk of losing market share due to U.S. sanctions. 

U.S. President Donald Trump re-imposed sanctions targeting Iran's energy, shipbuilding, shipping, and financial sectors. The sanctions also targeted Iran's oil sales from Nov. 5, in order to hurt the country's economy and bring Tehran back to the negotiating table to discuss its nuclear arsenal. 

Iran, due to sanctions, is also losing market share to Saudi Arabia, which saw its crude oil production recently reach a record high level of 11.2 million barrels a day.

U.S. sanctions on Iran exempts eight countries, including China and Turkey, but Tehran could see its oil exports and revenues diminish rapidly if the remaining client countries look elsewhere for their oil demand. 

Zanganeh refused to comment on whether Iran’s oil clients would continue buying crude.

Meanwhile, Iran has resolved banking issues for oil payments with China, an Iranian official told Fars News Agency on Wednesday.

"A Chinese bank will start its banking exchanges with the Iranian side on Dec. 2," said the Head of Iran-China Chamber of Commerce Asadollah Asgaroladi.

Oil sales to China will start next week, the payment of which will be made to Iran within a month, he added.

Furthermore, according to Japan's Jiji news agency, the president of the Petroleum Association of Japan said Tuesday that Japan's oil wholesalers are expected to resume crude oil imports from Iran as early as the end of the year.

Takashi Tsukioka, who is also the chairman of oil wholesaler, Idemitsu Kosan Co. said Japan would execute its existing deals with Iran.

The Trump administration granted waivers to eight countries including China, India, South Korea, Turkey, Italy, the U.A.E. Japan and Taiwan -- the top importers of Iran's oil. These countries will continue to buy Iranian oil for 180 days.