Statement by the Press Secretary on the Presidential Determination Pursuant to Section
1245(d)(4)(B) and (C) of the National Defense Authorization Act
for Fiscal Year 2012
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 October 30, 2014, indicates that oil markets continued to loosen in recent months. Although substantial global unplanned supply disruptions continue to remove oil from the market, production increases in other countries, particularly in the United States, and weak global demand growth have substantially mitigated oil market tightness and pushed crude oil prices to their lowest level in 4 years. Global surplus crude oil production capacity has increased in recent months and global crude oil inventories climbed. The price of Bent crude is below $80 per barrel, more than 25 percent lower than 6 months ago when the last determination was made.
While market conditions suggest that there is sufficient supply to permit additional reductions in purchases or Iranian oil, the United States has committed to pause efforts to further reduce Iran’s crude oil sales during the period of the Joint Plan of Action between the P5+1 and Iran. In return for this and other limited relief measures, Iran has taken steps that have halted – and in key respects rolled back – progress on its nuclear program. The International Atomic Energy Agency has verified that Iran is meeting these commitments.