Iran minister reiterates Trump to blame for rising crude prices

Russia says OPEC, non-OPEC can quickly agree on oil output boost

LONDON, Oct 2, (RTRS): Iran’s oil minister reiterated on Tuesday that US President Donald Trump was responsible for rising oil prices, and warned that the only way to bring balance to the market was to suspend sanctions on Tehran.

The United States aims to reduce Tehran’s oil revenue to zero in an effort to force Iran’s leadership to change its behaviour in the region. US officials have said new sanctions will be imposed on Iran’s oil sector from Nov 4.

Bijan Zanganeh said in an interview on state television that the Organization of the Petroleum Exporting Countries lacked the capacity to produce more oil to make up for the drop in Iranian sales.

“If Trump wants to bring stability to the oil market, he should suspend sanctions on Tehran,” Zanganeh added.

Oil prices have extended a rally this year on expectations the sanctions on Iran will test OPEC’s ability to replace the shortfall, despite a June agreement among the group to pump more after pressure from Trump.

Brent crude lost 37 cents to $84.61 per barrel by 1200 GMT on Tuesday after reaching a four-year high of $85.45 in the previous session.

“China and Europe will be severely damaged by the US sanctions against Iran,” Zanganeh said.

China’s Sinopec Corp is halving loadings of crude oil from Iran this month, as the state refiner comes under intense pressure from Washington.

Iranian Oil Minister Bijan Zanganeh will not be at an energy forum in Moscow that he was scheduled to attend this week, due to unforeseen circumstances, a source in the Russian government said on Tuesday.

Meanwhile, the Organization of the Petroleum Exporting Countries and other leading oil producers can quickly agree on oil output increase if needed, Russian Energy Minister Alexander Novak was quoted as saying by Interfax news agency on Tuesday.

He also said, according to the agency, they had not prepared a scenario for a sharp increase in oil prices, which have recently reached a 4-year high of more than $85 per barrel.