Some OPEC members are U.S. ‘tools,’ Iran says – Iran’s oil minister said he believes Trump has worked with certain OPEC members to keep prices inflated in order to support U.S. shale oil growth – OPEC members USA tools Iran - Arhive

This content has been archived. It may no longer be relevant

OPEC members USA tools Iran OPEC members USA tools Iran  OPEC members USA tools Iran  OPEC members USA tools Iran  OPEC members USA tools Iran  OPEC members USA tools Iran  OPEC members USA tools Iran  OPEC members USA tools Iran  OPEC members USA tools Iran  OPEC members USA tools Iran  

Some OPEC members are U.S. ‘tools,’ Iran says

Iran’s oil minister said he believes Trump has worked with certain OPEC members to keep prices inflated in order to support U.S. shale oil growth.
By Daniel J. Graeber Follow @dan_graeber Contact the Author
OPEC members USA tools Iran

Iranian Minister for Oil Bijan Zanganeh said he believes U.S. President Trump is coordinating with some OPEC members to keep oil prices high. File Photo by Maryam Rahmanian/UPI

| License Photo

(UPI) — There may be certain members of OPEC acting as “tools” for a U.S. government looking to capitalize on shale oil momentum, Iran’s oil minister said.

Crude oil prices are trading in the mid $70 per barrel range, supported in part by geopolitical risk and an effort by the Organization of Petroleum Exporting Countries to tighten a once-oversupplied market with coordinated production cuts. Oil prices jumped more than 3 percent this week after U.S. President Donald Trump pulled his country out of the Iranian nuclear agreement with world partners, sparking concerns about additional supply shortages.

Iranian Oil Minister Bijan Zangeneh said in an interview broadcast on Iranian television late Thursday that he believed Trump cut an agreement with certain OPEC members to keep production low in order to support the higher oil prices that stimulate U.S. shale production.

“We [OPEC members] argue that the price of oil at the $60 per barrel range would be better in the long-run, but there are some OPEC members that are acting as tools for carrying out U.S. policies,” he said.

Trump’s decision to leave the Joint Comprehensive Plan of Action was met with widespread criticism, save for U.S. allies in Israel and Saudi Arabia, the regional arch foe of Iran and de facto head of OPEC. Both sides are locked in a proxy war in Yemen.

Both Saudi Arabia and Iran produced slightly more oil last month when compared with March, a survey from commodity pricing group S&P Global Platts revealed.

Trump in April used Twitter to complain the market was overheated, telling OPEC that “oil prices are artificially very high!” Brent crude oil closed on the day of that message at $74.06, compared with around $77.30 early Friday in New York.

Trump’s decision gives Iranian oil customers 180 days to find other reserves and could eventually limit about 1 million barrels of oil from a market with little spare capacity to work with. Iran’s oil minister said Tehran has a long track record of coping with sanctions pressure and could easily weather the storm.

“I believe America’s withdrawal from the JCPOA would lead to no significant development with regards to Iran’s exports of oil and condensate,” he said.

Related Topics

-Get ready for $100 a barrel oil and the conflict it represents – The geopolitical risk premium in oil has driven crude prices to nearly four-year highs and shows no signs of abating – $100 barrel crude oil

-Oil for $300. Is It Possible? – If major oil companies keep postponing the necessary investments, the next “huge supply shock” may bring the oil price up to $300 per barrel – Crude Oil $300 per barrel possible

-Oil eases as clock ticks down to Trump decision on Iran – Oil eased on Tuesday ahead of an announcement by U.S. President Donald Trump later in the day on whether the United States will reimpose sanctions on Iran, but the price held within sight of its highest in more than three years – Crude Oil Trump Iran

-Saudi Arabia Needs $88 Oil – Higher oil prices have provided a boost to the economies of oil-exporting nations such as Saudi Arabia – Saudi Arabia $88 Crude Oil

-BP says still sees oil at $50-$60/bbl in 2018 as shale output surges – BP expects benchmark oil prices to weaken in the second half of the year as U.S. shale production surges by up to 1.5 million barrels per day – BP crude oil $50 $60 barrel 2018 shale output

-Iran and the oil market – How Iran’s nuclear deal and a host of other factors are forging a new crude reality – Iran Crude Oil market

-Oil output cuts succeeded but future cloudy – There is a danger of Opec, non-Opec members exceeding their vision due to current rally in oil prices, energy expert says – Oil output cuts Opec nonOpec

-Who’s to blame for costly oil? Saudis, Russia and Trump himself – Rising oil prices are now the latest target in President Donald Trump’s cross-hairs. The nation’s tweeter-in-chief complained Friday about OPEC fueling – Blame costly oil Saudis Russia Trump

-Oil pulls back from gains; OPEC says glut nearly gone – Oil prices on Thursday hit highs not seen since 2014, built on the ongoing drawdowns in global supply and as Saudi Arabia looks to push prices higher, though U.S. crude gave back gains in the afternoon to finish lower – Crude Oil OPEC glut Saudi Arabia

-Escalating Middle East Tension Could Trigger Oil Prices To Hit $100 Per Barrel – Oil prices could soon soar to $100 per barrel amid growing fear about conflict in the Middle East, according to an oil analyst for CNBC – Oil Prices $100 Barrel

– IEA: OPEC Mission Near Completion as Oil Glut Vanishes – OPEC is on the verge of “mission accomplished” in its quest to clear the global oil glut that caused the worst industry downturn in a generation – IEA OPEC Crude Oil Glut

-Is Russia Cheating On The OPEC Deal? – After three months of steady output, Russia’s crude oil production increased in March to 10.97 million bpd, the highest level since April 2017, as the top two Russian companies boosted their production – Russia Cheating OPEC Deal

-Oil price crosses $70 amid Iran deal tensions – Oil prices rose as investors saw increasing possibility that the US could withdraw from the historic Iran nuclear deal – Crude Oil price dollars 70 Iran tensions

-Is $70 oil the new normal? – The global economy is poised to cope well even if oil prices will remain at around $70 per barrel throughout 2018, energy experts said – Dollars 70 barrel crude oil shale oil

-Will oil prices remain strong for the rest of the year? – The oil inventory trajectory anchors oil prices in the short term, and the cost of bringing on the marginal barrel of US tight oil supply serves as the medium-term anchor for prices – The oil inventory trajectory anchors oil prices in the short term, and the cost of bringing on the marginal barrel of US tight oil supply serves as the medium-term anchor for prices – Crude Oil prices