Iran’s representative to the Organization of Petroleum Exporting Countries (OPEC), Hossein Kazempour Ardebili, has warned that Trump’s hopes that other countries will fill the gap in oil supply after the US imposes sanctions on Iranian oil will not come to pass and are based on a “miscalculation.
Saudi Arabia, the UAE and Russia pretended to be able to deliver 2.5 million barrels a day replacing Iranian exports […] That was a miscalculation, Mr. President: you have fallen in their trap, and now oil prices will go up.
The USA withdrew from the Iran nuclear deal in May 2018 and promised to impose new sanctions against Tehran and any company that does business with it, potentially threatening to leave the world without 2.5 million barrels of Iranian oil.
US Saudi partner in crime, which helped to lower the oil prices some years ago, by dumping excessive oil into the markets, earlier assured Washington that it will be able to fill the gap in oil supply caused by US sanctions against Iran, but a recent report by International Energy Agency (IEA) has shown that it is possible that Saudi Arabia might fail to pull it off.
Donald Trump has previously scolded OPEC countries for “artificially” raising the oil prices by limiting output, claiming they are too high for the market and “ordered” the organization to increase production.
OPEC countries, in cooperation with several non-member oil producers such as Russia, have agreed to limit their oil production to restore pre-2014 oil prices. They are set to negotiate a prolongation of the agreement at the end of 2018.
Sputnik / ABC Flash Point Oil News 2018.