Today the President made the determination required under section 1245(d)(4)(B) and (C) of the National Defense Authorization Act for Fiscal Year 2012 regarding the supply of petroleum and petroleum products from countries other than Iran.
The analysis contained in the Energy Information Administration’s report of April 24, 2014, indicates that global oil consumption has exceeded production in recent months. This resulted in a small withdrawal from global oil stocks, in line with rates earlier this year. Global oil supply disruptions in recent months increased compared with earlier this year, but the resulting supply reduction was offset by increased petroleum production, particularly in the United States. Global surplus crude oil production capacity has increased modestly in recent months but remains lower than a year ago. Oil inventories among members of the Organization for Economic Cooperation and Development are 3 percent below year ago levels. The Brent crude oil price remains near $110 per barrel, in line with the price level 6 months ago when the last determination was made.
While these factors indicate general market tightness, they also indicate that there currently appears to be sufficient supply of non-Iranian oil to permit foreign countries to reduce significantly their purchases of Iranian oil, taking into account current estimates of demand, increased production by countries other than Iran, inventories of crude oil and petroleum products, and available spare production capacity. However, while market conditions suggest that there is sufficient supply to permit additional reductions in purchases of Iranian oil, the United States has committed to pause efforts to further reduce Iran’s crude oil sales for a 6-month period under the Joint Plan of Action between the P5+1 and Iran. In return for this and other limited relief measures, Iran has committed to take steps that halt – and in key respects roll back – progress on its nuclear program. The International Atomic Energy Agency has verified that Iran is complying with these commitments.