Iran says Trump is why oil prices are now so high

Marcus Newton
September 27, 2018

Iranian Minister of Petroleum has welcomed OPECs decision effectively rebuffing President Donald Trump's calls for a hike in oil output, saying United States empty dream to zero Irans oil exports would not realize.

Global benchmark Brent fell 14 cents to $81.73 a barrel by 12:53 p.m. EDT (1653 GMT). On Tuesday, Brent rose as high as $82.55, the highest since November 2014.

U.S. West Texas Intermediate (WTI) crude futures fell 39 cents to $71.89 a barrel.

Speaking at the Asia Pacific Petroleum Conference (APPEC) in Singapore, the president of commodity merchant Mercuria Energy Trading, Daniel Jaeggi, said that almost two million barrels per day of crude could be removed from the market by the fourth quarter of 2018 due to these sanctions.

At the same time, the demand worldwide is reaching 100 million barrels per day for the first time in history.

This has managed to put pressure on other countries as well, in efforts to cut them off from Iranian crude oil imports.

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Still, the oil market is bracing for a hit to global supplies from renewed USA sanctions on Iran. Brent remains on course for its fifth consecutive quarterly increase, the longest stretch since early 2007 when a six-quarter run led to a record-high price of $147.50 a barrel. Meanwhile, the European Union announced a plan to continue buying Iranian crude via a special-purpose vehicle for barter transactions.

USA officials, including President Donald Trump, are trying to reassure consumers and investors that enough supply will remain in the oil market and have pushed OPEC to raise output.

"Trump blames Opec for what he has created and caused: the rise of the price of oil and disturbance in the market".

President Donald Trump pulled the USA out of the nuclear deal between Iran and world powers in May.

The so-called "Opec+" group, which includes Russia, Oman and Kazakhstan, met over the weekend to discuss a possible increase in crude output, but the group was in no rush to do so.

Zanganeh said if Trump wanted prices to ease then he had to "stop his unwarranted interference... in the Middle East and not prevent Iran's production and exports". "Given the current oil market scenario, we believe prices of crude oil are to rise around $78/bbl -$80/bbl unless the number of rigs deployed by the by the United States are increased", said credit ratings agency CARE Ratings.

Other reports by MaliBehiribAe

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