Iranian oil minister calls Trump’s order to OPEC insulting

Iranian oil minister calls Trump’s order to OPEC insulting

Iranian oil minister calls Trump’s order to OPEC insulting

"So based on those assumptions, we estimate zero Iran exports could push oil up by $50 if Saudi Arabia caps out", BofA Merrill Lynch analysts said.

"Political issues should not interfere in the crude market, and supply and demand should determine the final oil price", Bijan Namdar Zanganeh said, Press TV reported on Saturday.

"Mr. Trump sends every day a new message that creates uncertainty in the market", Zanganeh said, "Trump's order to OPEC members to increase production is a great insult to those governments and nations, and destabilizes the market".

Zanganeh added the United States president's order is an insult to the national sovereignty of these independent governments and nations.

On Wednesday Trump took to Twitter to accuse Opec of "driving prices higher" and insisted there "must be a two way street".

Zanganeh said Trump's anti-OPEC remarks are the causes of the increase in the prices in the oil market over the past days.

They said zero-tolerance sanctions on Iran - the fourth-largest oil producer - could add $US50 per barrel to crude prices, which are up more than 25 per cent this year. Find us on Facebook too!

Iran, an OPEC member, faces renewed United States sanctions over Trump's decision to quit the worldwide nuclear deal with Tehran, which has added to supply concerns on world markets.

"Saudi Arabia could boost volumes supplied to the market by releasing some of its domestic crude stocks as well as raising field production, but stock releases would only ever be a short-term measure", Reuters further added.

On Saturday, a petroleum ministry official told state-run IRNA news agency that the US sanctions against Iran's oil exports will weaken the OPEC.

The oil sanctions come after OPEC and other supply-cutting countries agreed at a summit in June to reduce compliance from more than 150 per cent in May to about 100% starting this month.

"Iran's oil will not lose its customers because a lot of companies are buying oil from the country", said Moayyed Hosseini Sadr, the ministry advisor.

The purchase was partly to compensate for a decline in Venezuelan heavy grade Merey, said one of the officials.

"There will remain no such organization (as OPEC) in the future after continuation of the sanctions" against Iran, he was quoted as saying.

South Korea halted all Iranian oil shipments in July for the first time in six years amid U.S. pressure.

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