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Iranian minister: Donald Trump’s order to OPEC ‘insulting’

11 July 2018

The Iranian official also criticised a reported request that the United States made of Saudi Arabia to help stabilise oil prices in case the sanctions against Iran drives oil prices up.

"It's an insult to the people and national sovereignty of these countries and it also destabilises the market", he added.

"If the USA government were to relax regulations on offshore oil resources and expedite having companies develop oil resources that are on federal land, then the US would not almost be as dependent on OPEC as it now is", says Robert Murphy, an economist at the Institute for Energy Research.

"We are working to minimize disruptions to the global market, but we are confident that there is sufficient global spare oil production capacity", Brian Hook, the director of policy planning, said on July 2.

OPEC and Russian Federation and other producers last month agreed to add 1 million barrels to the market. If Trump really wants to reduce oil prices in America, he should start there.

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Zanganeh said that exerting pressure as such was against the principles of the Organization of the Petroleum Exporting Countries (OPEC) in which both Saudi Arabia and Iran are founding members.

On Wednesday, Trump said OPEC is "driving oil prices higher", urging the cartel to reduce the price at the soonest.

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

Iran, OPEC's third-largest producer, is facing United States sanctions on its oil exports that are prompting some buyers to cut purchases.

"Importantly, the last episode of rising oil prices has led to significant draws in Saudi oil inventories".

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"Iran's oil will not lose its customers because a lot of companies are buying oil from the country", said Moayyed Hosseini Sadr, the ministry advisor.

He added that OPEC principles would never allow political pressures to change the directions of the market.

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.

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.

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Iranian minister: Donald Trump’s order to OPEC ‘insulting’