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IRAN-SAUDI-OIL-SANCTION
Iran says Saudi claims to replace its oil ‘unbelievable’
TEHRAN, Oct 8, 2018 (BSS/AFP) – Iran’s oil minister said on Monday that
the market will never believe “exaggerated” claims by Saudi Arabia that it
can replace Iranian oil shipments lost due to renewed US sanctions.
“Such exaggerations might please Mr Trump, but the market will never
believe them,” Bijan Namdar Zanganeh said, according to the oil ministry’s
SHANA news site. “These statements were made due to Mr Trump’s pressure on
Saudi authorities. In reality, neither Saudi Arabia nor any other producer
has such a capability,” he added.
Saudi Crown Prince Mohammed bin Salman told Bloomberg on Friday that Saudi
Arabia “did (its) job and more” by making up for the recent drop in Iranian
oil sales.
He said Iran’s sales had fallen by 700,000 barrels per day since the
United States announced in May that it was pulling out of the 2015 nuclear
deal with Iran and reimposing sanctions on its oil industry.
Precise figures are unavailable, not least because Iran has begun
switching off tracking devices on some oil-exporting ships since the threat
of sanctions returned, according to analysts.
Iran was exporting between 2.5 and 2.7 million bpd in April before the US
announced the return of sanctions.
“We export as much as two barrels for any barrel that disappeared from
Iran recently,” Prince Mohammed told Bloomberg.
But Zanganeh retorted that the Saudis had only opened up “their previous
reserves” to the market and that their output capacity had not increased.
The Saudi statement could have a “short-term psychological effect”, he
added, but it would not mean much to global energy markets which had shown
their concern over shortages by hiking prices.
The sanctions on Iran’s oil sector are not due to hit until November 5,
but several key buyers in Europe and Asia have already cut purchases in
recent months under pressure from Washington.
BSS/AFP/FI/ 2000 hrs