Iran Warns India Against Oil Imports From US and Saudi Arabia

Iranian oil minister calls Trump's order to OPEC insulting

Iranian oil minister calls Trump's order to OPEC insulting

"Questions are being asked as to the extent to which Saudi Arabia will increase its production, to offset shortfalls elsewhere in the market", the analysts said in a report sent to Rigzone.

Trump's order to oil producing countries to raise output "is very insulting to the people of these countries and would undermine their national sovereignty and destabilize the oil market", he said.

"Our goal is to increase pressure on the Iranian regime by reducing to zero its revenue from crude oil sales", a senior State Department official told a news briefing this month.

Zanganeh added: "Trump's order to OPEC members to increase production is a great insult to those governments and nations, and destabilises the market".

The oil sanctions come after OPEC and other supply-cutting countries agreed at a summit in June to reduce compliance from more than 150 per cent in May to about 100% starting this month. If Trump really wants to reduce oil prices in America, he should start there.

On Wednesday, Trump said in a tweet the "OPEC Monopoly must remember that gas prices are up and they are doing little to help". In fact, Yahoo Finance reported Thursday that Saudi Arabia will bring down the price of a barrel of light oil from $2.10 to $1.90.

Money managers raised their bullish bets on U.S. crude in the week to July 3, the U.S. Commodity Trading Commission said on Monday. This statement comes in the wake of fresh sanctions on Iran after US President Donald Trump made a decision to pull out of the nuclear deal with Iran.

And it would leave the global market tighter than at any time since the oil shocks of 1973/74 and 1979/80, with resulting upward pressure on prices.

Even if the Europeans cave in to USA demands, the world has changed a great deal since the pre-Iran deal era.

He further added that Iran has always been an open market to India be it for petroleum, urea or other areas of energy cooperation and Iran has always understood what India needed.

South Korean refiners have since curtailed their Iranian oil purchases and turned to alternative sources such as American and African crude due to expensive Middle East grades and uncertainty over trade with Iran.

South Korea has bought almost 296,000 barrels of oil from Iran in the first five months of the Iranian calendar year (starting on March 21), and is the biggest buyer of Iranian oil after China and India.

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