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IRAN-OIL-US-SANCTION
Iran says neighbours exaggerating oil capacity
TEHRAN, May 2, 2019 (BSS/AFP) – Iranian Oil Minister Bijan Namdar Zanganeh
on Wednesday claimed two neighbouring countries were “exaggerating” their
production capacity to reassure markets after the US ended sanction waivers
for buyers of Iranian crude.
Zanganeh also said Washington’s stated aim to bring Iran’s oil exports “to
zero” was “an illusion”.
The White House announced last week it would end from Thursday oil
purchase waivers granted to Iran’s main customers — including China, India
and Turkey.
Since then, Zanganeh claimed, “two of our neighbouring countries
constantly try to reassure the market, by issuing statements and by
exaggerating their surplus capacities”.
These countries which he did not name were trying to signal to the world
that “there would be no problem facing global supplies as Iranian oil goes
off the market”.
It’s “an exaggeration”, Zanganeh said, speaking at an oil and gas
conference in Tehran.
“World affairs are not as simple as America and some of its supporters and
instigators think. The oil market cannot be managed with statements, what is
determining is real oil production that is placed on the market.”
The end of the exemptions sparked fears of supply shortages, pushing
prices to near six-month highs.
After the US announced an end to the oil waivers, Iran’s regional rival
and neighbour Saudi Arabia said the kingdom had no immediate plans to boost
output but was committed to balancing the oil market.
“We will not leave our customers scrambling for oil,” Saudi Energy
Minister Khalid al-Falih said on April 24.
Countries looking to replace Iranian crude “know which number to dial,”
Falih said.
“(Global) inventories are continuing to rise despite what’s happening in
Venezuela and tightening sanctions on Iran,” he added.
Saudi Arabia, a member of the OPEC cartel, is the world’s top crude
exporters.
Iraq, the cartel’s second-largest producer and also a neighbour of Iran,
has the capacity to increase its exports by 250,000 barrels a day to
compensate for any market shortfalls, an Iraqi government official said last
week.
BSS/AFP/HR/1020