Iran's oil minister has hit back at Donald Trump today over his demand for more production, branding the president's orders as an insult to the Organisation of the Petroleum Exporting Countries (Opec).
The Iranian minister also criticized Trump's pressure on Saudi Arabia to increase its supplies and said such efforts would destabilize oil market.
Donald Trump has insulted OPEC member states by ordering the organization to reduce prices, the Iranian oil minister stated, responding to the U.S. leader's recent criticism of OPEC for keeping oil prices artificially high. Mentioning U.S. president Trump's recent tweets, Zanganeh noted that such actions will result in chaos in the oil market and push the prices further up.
Iran's petroleum minister said that "political issues should not interfere in the crude market, and supply and demand should determine the final oil price".
On Friday, Oil prices fell due to surging U.S. output and falling demand in China amid global tensions and a Saudi production increase.
OPEC and Russian Federation and other producers last month agreed to add 1 million barrels to the market. But if anything, Trump's bluntness is refreshing: if, as he suggests, the objective of the USA military - with a yearly total budget of a trillion dollars - is to protect OPEC members in exchange for "cheap oil", how cheap is that oil?
Money managers raised their bullish bets on U.S. crude in the week to July 3, the U.S. Commodity Trading Commission said on Monday.
Mazrouei said OPEC was willing to listen to major oil-producing countries, including the United States.
The move is part of Trump's withdrawal from the Iran nuclear deal, which previously eased economic penalties on the country as long as it curbed its nuclear weapons program.
Firms that were doing business in Iran were given up to 180 days to wind up investments, otherwise, they risk huge fines, it said. Now after the USA pulled out from the Iran Nuclear Deal, India has been in a dilemma over India-Iran trade especially that of oil.
The move by South Korea, one of Iran's main customers in Asia along with China and Japan, comes as it is in talks to seek an exemption from U.S. curbs on buying Iranian oil, in line with a waiver it received during previous sanctions, Reuters reported.
Iran, OPEC's third-largest producer, is facing United States sanctions on its oil exports prompting some buyers to cut purchases.