Inadequate supplies are posing serious challenges to the international oil market and the ensuing problems cannot be addressed with empty slogans or by bullying from the Trump White House.
Oil Minister Bijan Namdar Zanganeh made the statement Tuesday on the sidelines of the 4th Petroleum and Energy Club Congress in Tehran, October 16-18, IRNA reported.
Zanganeh said the hike in crude prices is due largely to the US sanctions against Iran’s oil exports and can only be resolved by lifting the unjust restrictions.
"The only way to balance the market is to lift the sanctions," he noted, stressing that US President Donald Trump cannot and will not restore stability to the chaotic oil market by bullying.
Oil prices have extended a rally this year on expectations that the sanctions on Iran will test OPEC’s ability to replace the deep shortfall.
International benchmark Brent crude for December delivery rose 27 cents, or 0.33%, to $81.05 per barrel. US West Texas Intermediate crude for November delivery was up 12 cents at $71.90 a barrel.
The minister is of the opinion that the Organization of the Petroleum Exporting Countries cannot produce more oil to plug the Iranian shortfall, nor can Saudi Arabia support the market for long.
“Oil exporting countries are concerned and Trump has failed to reassure them of the future of oil markets, which explains why the market is in chaos,” he told the conferees.
Zanganeh said the US has done all it can to intimidate Iran's traditional clients to halt their imports but Iran has found new buyers.
Turkey and Italy are the last buyers of Iranian crude besides China, India and the Middle East, according to tanker data and an industry source, the latest sign that shipments are taking a major hit from the looming US sanctions.
Iran exported 1.33 million barrels of crude per day so far in October to India, China, Turkey, and the Middle East, according to Refinitiv Eikon data. No vessels are shown heading to Europe with Iranian crude.
US sanctions on Iranian oil exports are due to kick in on Nov. 4. The Trump team has been pushing its allies to cut Iranian oil imports and is encouraging Saudi Arabia, other OPEC states and Russia to pump more oil to meet the projected shortfall.
Crude prices have also been supported by geopolitical tensions caused by the disappearance of a Saudi Arabian journalist in Turkey. Turkish officials have alleged Saudi intelligence officers killed the journalist Jamal Khashoggi on Oct. 2 at the Saudi consulate in Istanbul.
This is while Saudi energy minister Khalid Al-Falih on Monday said the kingdom was the world’s energy “shock absorber” and pledged to continue to offer a cushion to global supply interruptions.
But he also warned that it was the time that this balancing role was respected and acknowledged by the international community. He did not elaborate.
According to statistics, in 2018, global crude oil demand has increased to approximately 99 million barrels per day, yet it was 86.4 million barrels in 2010.
