Iran rejects spat with Russian Federation over Saudi oil push

Ann Santiago
July 3, 2018

Hook sad more than 50 firms announced their intent to leave the Iranian market, particularly in energy and finance sectors, as the moving toward placing sanctions on Iran. After the USA pulled out of the nuclear deal with Iran, Washington has been pushing allies to cut oil imports from Iran altogether by November.

European countries have been attempting to negotiate exemptions for their firms, but the official confirmed that US President Donald Trump intends to stick to his deadline.

Iran possesses the second-largest gas reserves on the planet, after Russian Federation, and the fourth-largest oil supplies, while Saudi Arabia is the world's biggest oil exporter.

"The Trump administration's plan for Iran sanctions is now abundantly clear".

"We are prepared to work with countries that are reducing their imports on a case-by-case basis", he said.

Last week, OPEC countries and other major oil producers that participated in the 2016 Vienna deal agreed on increasing production to one million barrels per day, which is the volume of the countries' over-compliance with the agreement.

"We are not looking to grant licenses or waivers, because doing so would substantially reduce pressure on Iran, and this is a campaign of imposing pressure", Brian Hook, Director of Policy Planning at the State Department told reporters at a news conference yesterday. "Of course, it should be noted that Iran has little problem with Russian Federation in the global oil markets", Iran's OPEC governor Hossein Kazempour Ardebili said Tuesday.

Iran shipped out over 2 million barrels per day of oil past year, with Asia taking almost three quarter of the supply and the remainder heading to Europe.

Washington aims to cut Iran's oil sales, First Vice President Es'haq Jahangiri said, adding that this is an impossible measure.

Oil ministers from OPEC and cooperating non-OPEC countries (notably Russia) agreed to raise production in response to the highest oil prices since 2014. "Absolutely", the president responded when asked if the USA would sanction European countries that do business with Iran.

Tehran and Riyadh are members of the Organisation of Petroleum Exporting Countries, a cartel that manages supply to the global market via production quotas so as to keep prices in member states' favour.

"It depends on the conduct of other governments", Bolton said.

But a flurry of United States announcements over the weekend unsettled oil markets. This reality argues for increasing production in times of tight markets-selling oil now and maintaining market share is likely to be a better strategy than saving it for later when it may be worth less. But he says the United States "is prepared to work with countries that are reducing their imports on a case-by-case basis".

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