Iran’s oil minister last week warned Opec is “likely to collapse” because some members of the 14-nation group are working against their fellow producers, Kallanish Energy learns.
It’s not hard to figure out the comments referred to Saudi Arabia and the United Arab Emirates. When U.S. Secretary of State Mike Pompeo first announced sanction waivers involving Iran would not be renewed past May 1, and when the remarks were reinforced May 2, the White House said the Saudis and Emiratis will work with the U.S. to offset the anticipated drop in Iranian oil supplies.
“Iran is an Opec member just for its interests, and if certain Opec members want to threaten and endanger Iran, Iran will not refrain from responding to them,” Iranian oil minister Bijan Zangeneh told Shana, the ministry’s news agency.
The remarks were made following a meeting with Opec secretary general Mohammed Barkindo in Tehran, CNBC reported.
“I told Mr. Barkindo that Opec is being threatened due to unilateralism by certain members and this organization is likely to collapse,” Zangeneh said.
U.S. sanctions, imposed in November, have cut Iran’s crude oil exports by roughly 1 million barrels per day (Mmbpd). With the waivers canceled, analysts now expect the country’s exports to fall another several hundred thousand barrels per day, CNBC reported.
Representatives of Opec+, the group of producer-nations that includes most Opec members, along with a number of non-Opec producers led by Russia, are scheduled to meet June 25-26 in Vienna to decide whether to extend their deal to limit oil supply.
Since Jan. 1, the producers have worked toward keeping 1.2 Mmbpd off the world markets.
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