The global oil market is unable to replace Iranian exports, and rising oil prices show that in the coming months the market will be in short supply of oil, Iranian Oil Minister Bijan Zanganeh said.
MOSCOW (Pakistan Point News / Sputnik - 08th October, 2018) The global oil market is unable to replace Iranian exports, and rising oil prices show that in the coming months the market will be in short supply of oil, Iranian Oil Minister Bijan Zanganeh said.
The global oil market is now waiting for the new package of US sanctions to be introduced in early November to target Iran's energy sector and oil exports, among other areas. Crown Prince of Saudi Arabia Mohammed bin Salman said earlier in October that Riyadh had followed the US request and jointly with the Organization of the Petroleum Exporting Countries (OPEC) and other oil producers increased oil exports "as much as two barrels for any barrel that disappeared from Iran recently."
"Such brags would only satisfy Mr. [US President Donald] Trump but the market would never buy such a claim ... It seems that such remarks were made under U.S. pressure on Saudi authorities; otherwise in reality, neither Saudis nor any other countries could replace Iran's exports. The market and rising prices are the best evidence of concern that the market is in short supply and is rightly nervous about the severe shortage of oil in the coming months," Zanganeh said as quoted by Iran's Shana news outlet.
Oil prices reached a historic minimum in 2016, forcing OPEC and other oil producers to cut production by a total of 1.8 million barrels per day. The strategy brought London-traded Brent crude from slightly over $43 per barrel in 2016 to over $72 in 2018. Brent crude futures hit a four-year high at $86.74 per barrel on October 3.
