OPEC says it's doing best to supply market but won't overdo it
11 July 2018, 03:42 | Kelvin Horton
American oil producers may find a new friend in India as they brace for a trade war with China that could curb US shipments
On Wednesday, Trump said in a tweet the "OPEC Monopoly must remember that gas prices are up and they are doing little to help". Now after the U.S. pulled out from the Iran Nuclear Deal, India has been in a dilemma over India-Iran trade especially that of oil.
Iran's oil minister on Saturday accused US President Donald Trump of insulting OPEC by ordering it to increase production and reduce prices, adding that Iranian output and exports had not changed as a result of US pressure.
Iran's Opec governor Hossein Kazempour Ardebili was quoted in June as saying that oil prices could jump to $140 a barrel due to the USA sanctions against the country and Venezuela.
They argued that since Saudi Arabia had never pumped more than 10.6 million bpd, could it now increase production and make up for any missing Iranian volumes?
An increase in supply will reverse some of the output cuts that OPEC and other major producers put in place in early 2017 to end several years of supply glut.
Hossein Kazempour Ardebili, Iran's ambassador to the OPEC, said the strong rhetoric by Trump against OPEC and oil producers could soon push up crude prices to as high as 100 USA dollars per barrel.
On Saturday, a petroleum ministry official told state-run IRNA news agency that the USA sanctions against Iran's oil exports will weaken the OPEC.
The administration has not been clear about whether sanctions will apply just to crude or will include condensates ("Briefing with an Iran diplomacy update", State Department, July 2).
"There will remain no such organization (as OPEC) in the future after continuation of the sanctions" against Iran, he was quoted as saying.
He further added that Iran has always been an open market to India be it for petroleum, urea or other areas of energy cooperation and Iran has always understood what India needed.
The move by South Korea, one of Iran's main customers in Asia along with China and Japan, comes as it is in talks to seek an exemption from USA curbs on buying Iranian oil, in line with a waiver it received during previous sanctions, Reutersreported.
Baker Hughes energy services firm said in its report on Friday that United States crude prices jumped to their highest since November 2014 earlier this week.
"There was pressure from the South Korean government to halt purchases", said a North Asian trading source familiar with Iranian oil shipping arrangements.
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