Iranian oil minister call Trump’s order to OPEC…

Iranian oil minister call Trump’s order to OPEC…

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

Iran on Saturday accused US President Donald Trump of destabilising the oil market, saying he gives OPEC members orders that are "very insulting".

Iranian Petroleum Ministry announced Sunday that there has been no major change in Iran's production and export of crude oil despite US sanction threats.

"There was pressure from the South Korean government to halt purchases", said a North Asian trading source familiar with Iranian oil shipping arrangements.

Zanganeh said Trump's anti-OPEC remarks are the causes of the increase in the prices in the oil market over the past days.

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. Saudi Arabia has stated it has spare capacity of 2 million bpd, but bringing it back online-if it is indeed so large-will take more than a day or two, analysts have warned.

"An increase in production of this magnitude would wipe out the bulk of remaining spare capacity, globally".

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Experts are also doubtful if Saudi Arabia can mobilize its forces rapid enough to boost its oil production and specifically maintain the rise over a long period of time. Trump again accused the Organization of the Petroleum Exporting Countries of driving fuel prices higher on Wednesday, and urged US allies such as Saudi Arabia to pump more if they wanted Washington to continue protecting them against Iran.

But according to the U.S. Energy Information Administration, the kingdom has not produced more than 10.42 million bpd on an annual basis (2016) or 10.63 million bpd in a single month (July 2016) in the last 20 years.

Boosting production this way might risk a decline in oilfield pressure that could result in long-term damage to the reservoirs.

Others believe that it is not clear whether the pipelines, processing plants and export terminals have enough capacity to handle 12 million bpd because such high flow rates have never been tested.

The comments this morning follow on from yesterday's news that Saudi Arabia raised oil output by about 500,000 barrels per day in June.

Based on that assumption, they added, zero Iran exports could push oil up by $US50 a barrel if Saudi Arabia caps out.

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