Iran's oil minister has hit back at Trump over production demands

Iran's oil minister has hit back at Trump over production demands

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.

"It's unfair to say that OPEC is not doing its part", Al-Mazrouei said, referring to President Donald Trump's Twitter tirade against the cartel for not doing enough to rebalance the market.

Zanganeh added the USA president's order is an insult to the national sovereignty of these independent governments and nations. Iran also accused Trump of being the reason for the surge in oil prices through his sanctions on Venezuela and Iran, both members of OPEC.

When President Trump Tweeted last week that Saudi Arabia agreed to begin pumping additional oil to make up for the removal of Iran from the global markets, the Saudis very quickly corrected him, saying that while they could increase capacity if needed, no promise to do so had been made.

Abu Dhabi: Saudi Arabia has told Opec it pumped 10.488 million barrels per day (bpd) of crude oil last month, an increase of 458,000bpd from the level it said it produced in May, Opec sources told Reuters on Thursday.

Oil prices rebounded strongly following the message from the U.S. Department of State.

Iran, OPEC's third-largest producer, is facing U.S. sanctions on its oil exports that are prompting some buyers to cut purchases. "Thus, it appears the oil market has little confidence that Iran volumes can be easily replaced", BofA Merrill Lynch analysts said.

Following Trump's decision to quit the historic Iran nuclear pact on May 8, the United States vowed to re-impose sanctions lifted under the accord against Tehran and inflict punishments like secondary sanctions on nations that have business links with Tehran.

The agreement was between Iran and six countries, who agreed Iran would end its nuclear program in exchange for an end to sanctions.

"There might be a slight decline in Iran's oil sale, but different companies' secret purchase of Iran's oil can compensate it", he said. "In contrast, we now project global oil supply and demand balances to remain in a structural deficit for most of the next six quarters", he wrote.

South Korean buyers of Iranian crude and condensate are SK Energy and SK Incheon Petrochemical, owned by SK Innovation, Hyundai Oilbank Corp and Hanwha Total Petrochemical Co. "South Korea overall is lifting zero oil (from Iran) for July loading".