Saudis, Russians Have Taken Global Oil Market Hostage

Iran’s OPEC governor said on Saturday that Saudi Arabia and Russia have taken the oil market “hostage”, as US President Donald Trump seeks to impose fresh sanctions on Iranian oil sales. Washington wants to cut Iran’s oil exports to zero by November and is encouraging producers such as Saudi Arabia, other OPEC members and Russia to pump more to meet the shortfall.

“Russia and Saudi Arabia claim they seek to balance the global oil market, but they are trying to take over a part of Iran’s share,” Hossein Kazempour Ardebili was also quoted as saying by Reuters. “Trump’s effort to cut Iran’s access to the global crude market has prompted Russia and Saudi Arabia to take the market hostage,” he added.

Kazempour told Reuters on Friday that the United States will find it difficult to cut Iran’s oil exports completely as the oil market is already tight and rival producers cannot make up the shortfall.

On Saturday, he accused Moscow and Riyadh of welcoming sanctions against Iran for their own gain and warned that such actions would damage the credibility of OPEC. “Saudi Arabia and UAE are turning the OPEC into a US tool,” he said.

Under pressure from Trump to lower oil prices, the Organization of Petroleum Exporting Countries and allies agreed in June to boost production, having participated in a supply-cutting deal in place since 2017. While OPEC production has increased since then, Saudi Arabia has added less crude than it initially indicated.