Iran's OPEC Representative: Oil Prices May Exceed $100

Hosseyn Kazempour Ardebili, Iran's representative at OPEC, stated that if Iran's oil exports are interrupted, the price of oil could exceed $100 per barrel. The U.S. has asked oil-importing countries to reduce their imports from Iran to zero within the next three months. On Thursday, July 5, Kazempour told Reuters that U.S. President Donald Trump should 'expect' that if Iran's access to global markets is cut off, oil will become 'hostage to Saudi Arabia and Russia,' and these countries are also unwilling to reduce oil prices. Kazempour said, 'The responsibility for the unnecessary costs for customers worldwide, especially at fuel stations in the U.S., rests solely with (Trump), and a price above $100 per barrel is on the way.' In recent weeks, Trump has pressured OPEC countries to lower oil prices. One factor contributing to the rising oil prices is the U.S. withdrawal from the international nuclear agreement (JCPOA) and the re-imposition of extraterritorial sanctions against Iran. Reuters noted that the rising gasoline prices could pose a political problem for Trump ahead of the upcoming midterm elections in November. On Saturday, Trump tweeted that Saudi Arabia had agreed to increase oil production by two million barrels per day, claiming that this increase could compensate for the reduction in Iranian oil exports. However, the White House later clarified that King Salman had told Trump in a phone call that Saudi Arabia has the capacity to increase production by two million barrels if needed. Trump's criticism of OPEC comes as he simultaneously pressures European countries to refrain from purchasing Iranian oil. Meanwhile, Iranian President Hassan Rouhani threatened during his European trip that if the U.S. obstructs Iran's oil exports, other countries will also be unable to export oil from the Persian Gulf. Rouhani's statements have received support from the commanders of the Revolutionary Guards. The U.S. has also responded to these statements, asserting that it will not allow the flow of oil from the Persian Gulf to be interrupted. Kazempour told Reuters, 'We are neighbors and will remain neighbors; we know we can live together and must be able to. No one wants you to protect anyone... Mr. (Trump), since you came to power, you have been constantly at war with everyone.' Although rising oil prices increase costs for American voters, higher prices make U.S. shale oil extraction more profitable, allowing the country to increase its oil exports. On Wednesday, OPEC crude oil prices reached $75.38 per barrel.