Iraq, the second-largest producer within the Organization of the Petroleum Exporting Countries (OPEC) behind Saudi Arabia, is targeting production capacity of 5 million bpd in 2019, up from 4.6 million bpd now, Oil Minister Thamer Ghadhban said on Tuesday.
The measure announced on Monday was "interim" and only allowed the continuation of the three non-proliferation projects "under the strictest scrutiny to ensure transparency and maintain constraints on Iran" Efe quoted the State Department as saying.
He noted that the committees should immediately stop their work.
Washington has said it wants to force Iranian oil exports down to zero, but Bernstein Energy now expects "Iranian exports will average 1.4 million to 1.5 million bpd" during the exemption period, about half the volume in mid-2018.
The JTC prepares regular reports on the oil market which inform the group's decisions.
Oil prices rose sharply in morning trades after reports suggested that Russian Federation and Saudi Arabia have started bilateral discussions over possible 2019 oil production cuts.
Russian Federation pumps an average of 10.8million bpd and Saudi Arabia, about 10.5million bpd.
"Crude oil imports rose ... as uncertainty around tariffs on USA imports and sanctions on Iran eased", said ANZ bank following the data release.
The sanctions reimposed on Iran's oil exports - its main revenue source - and financial sector were triggered by US President Donald Trump's May 8 decision to abandon the 2015 global deal created to block Tehran's development of nuclear weapons.
The US government re-imposed the sanctions after withdrawing in May from the 2015 Iran nuclear agreement, which is more formally known as the Joint Comprehensive Plan of Action (JCPOA).
"Painful months for oil consumers" are coming, Iranian oil minister Bijan Zanganeh said Thursday, state TV reported.
China, the world's biggest importer of crude oil, is also the top buyer of Iranian oil, and its mostly state-owned refiners have lobbied hard for waivers.
According to Refinitiv Eikon data, Iranian crude exports have fallen to 1 million bpd so far in November.
Japan's trade minister, Hiroshige Seko, said on Tuesday that Japanese buyers of Iranian oil were expected to resume imports after the country received a waiver from USA sanctions.
Futures fell after the industry-funded American Petroleum Institute was said to report USA crude stockpiles expanded by 7.83 million barrels last week.
"Any serious discussion will be toward the December meeting", the third source said.
However, Washington granted waivers to Iran's biggest customers to allow limited imports for 180 days.
One of the sources said the USA had attached some strings to the import allowance, including counter-party disclosures and laying open settlement methods, which were being evaluated before placing new orders with Iran.
"US Sanctions on Iran, which were initially thought to be the key driver of crude markets" recent climb, but the sanctions came into effect this week and crude prices barely registered, with investors primarily concerned about the still-rising potential for a glut of global oversupply as the US, Russia, and Saudi Arable look to expand production to make up for Iran's disappearance from global crude exchanges.
Brent crude closed at US$72.13 a barrel on Tuesday, down 1.4 per cent from the close on Nov 5, and down 15 per cent from the four-year high of US$84.79 reached on Oct 3.
India is, thus, being given time to phase out its oil imports from Iran in a calibrated fashion.