US: Oil markets can cope with more cuts in Iran exports

July 1, 2013 13:46

The top US energy official said world oil markets could cope with further cuts in Iran's oil exports from tighter sanctions over its nuclear program as rising supply from the United States and Iraq offsets the loss.

US lawmakers are embarking this summer on a campaign to deal a deeper blow to Iran's diminishing oil exports, and analysts say the ultimate goal could be a near total cut-off.But US Energy Secretary Ernest Moniz said growing U.S. and Iraqi oil output meant Iran was not now a "dominant player in the market" and that there was "quite a bit of potential for increased production to offset any further reduction".

There is also substantial reserve capacity in major OPEC producers such as Saudi Arabia, he said.

"So I would think that with further sanctions, the markets could be quite resilient to that," said Moniz, who took office last month.

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