Iran's OPEC Representative: Russia and Saudi Arabia Seek to Capture Iran's Market Share

A few days after Ayatollah Khamenei's request to Vladimir Putin for cooperation aimed at "containing America," Iran's representative at OPEC stated that Russia and Saudi Arabia have welcomed U.S. sanctions against Iran. Hossein Kazempour Ardebili said in an interview with Shana, affiliated with the Ministry of Oil, that these two countries are looking to "capture part of Iran's share" in the oil market. He emphasized that Iran's warnings have not influenced the behavior of these two countries and others. According to Mr. Kazempour Ardebili, Russia is trying to make the best use of the current situation by "getting closer" to the U.S. He also criticized the increase in oil production by the United Arab Emirates and Iraq. Russia, Saudi Arabia, and some other OPEC members believe they can compensate for the production decline of other members, but Iran asserts that only countries that have reduced production excessively are allowed to increase oil production. Recently, Russia increased its daily oil production by about 300,000 barrels to 11.25 million barrels and aims to raise this figure to 11.7 million barrels next year. U.S. Energy Secretary Rick Perry stated that Saudi Arabia, Russia, and the U.S. are capable of compensating for the decline in Iranian oil production following the implementation of sanctions. However, the Supreme Leader of the Islamic Republic, on September 7, called for increased cooperation between the two countries to "contain America" and also for economic transactions outside the dollar framework during a meeting with the Russian President. Last year, Iran exported 2.5 million barrels of oil and gas condensates daily, but over the past three months, Iran's oil production has declined by a total of 235,000 barrels per day. Iran's oil and gas condensate exports fell to about 2.05 million barrels last month, a decrease of about half a million barrels compared to last year, and it is expected to drop to 1.5 million barrels this month. The return of U.S. sanctions began on July 6, and the U.S. has announced that in the next phase of sanctions, starting on November 4, it will attempt to reduce Iran's oil sales to zero. According to some analysts, oil sales sanctions and banking sanctions will be the most significant sanctions against Iran, a point acknowledged by some Islamic Republic officials as well.