WHITE HOUSE WARNS EUROPE OVER IRAN BUSINESS

This news has been read 8725 times!

Trump says OPEC manipulates market

BERKELEY HEIGHTS, New Jersey, July 1, (Agencies): US President Donald Trump lashed out at OPEC with a warning to stop manipulating oil markets and piled pressure on close US allies in an interview that aired on Sunday with a threat to sanction European companies that do business with Iran. The president, in an interview with Fox News’ “Sunday Morning Futures with Maria Bartiromo,” also said he would not complete a new NAFTA trade deal with Canada and Mexico until after the November congressional elections.

Trump, who is spending the weekend at his golf property in New Jersey, said in a tweet on Saturday that Saudi Arabia’s King Salman bin Abdulaziz Al Saud had agreed to produce more oil. The White House later walked back the president’s comments, saying the king said his country can raise oil production if needed.

Oil prices rose on Friday on worries that US sanctions against Iran would take away significant volumes of crude oil from world markets while oil demand worldwide increases. Rising gasoline prices could create a political headache for Trump ahead of the November elections by offsetting Republican claims that his tax cuts and rollbacks of federal regulations have helped boost the economy.

On Fox, Trump directed blame at the Organization of Petroleum Exporting Countries, of which Saudi Arabia is a member. Asked if someone was manipulating oil markets, Trump said: “OPEC is and they better stop it because we’re protecting those countries, many of those countries.” The president also had tough words for other US allies.

Earlier this year, to the chagrin of European partners, Trump said he would pull the United States out of the Iran nuclear agreement secured by world powers. He said in the Fox interview that European companies would face sanctions if they traded with Iran now. “Of course. That’s what we’re doing, absolutely,” he said. Trump will leave for a trip to Europe later this month for a meeting with NATO allies, whom he has criticized sharply for paying too little for their joint defense.

Tensions
Trade tensions are likely to overshadow that trip. Trump has imposed tariffs on steel and aluminum in response to what he calls unfair trade practices from Europe, Canada, and other allies around the world, who have responded with retaliatory sanctions in kind. On trade, the president said in the Fox interview that he was not happy with the North American Free Trade Agreement and would not agree a new one until after the November elections. “I want to wait until after the election,” he said. Iran will allow private companies to export crude oil, part of a strategy to counter US sanctions, and is urging fellow OPEC members, including regional rival Saudi Arabia, not to break output agreements, state media and officials said on Sunday. Iran is looking at ways to keep exporting oil as well as other measures to counter sanctions after the United States told allies to cut all imports of Iranian oil from November.

“Iranian crude oil will be offered on the bourse and the private sector can export it in a transparent way,” First Vice- President Eshaq Jahangiri told an economic event in Tehran broadcast live on state television. “We want to defeat America’s efforts … to stop Iran’s oil exports,” he said. “Oil is already being offered on the bourse, about 60,000 barrels per day, but that has been only for exports of oil products,” Jahangiri said. Iran has an oil and petrochemicals bourse as part of its mercantile exchange.

Adhere
Meanwhile, Iranian Oil Minister Bijan Zanganeh sent a letter to OPEC asking its members to adhere to the group’s agreement reached last month to collectively raise output and “refrain from any unilateral measures” that could undermine the unity of the producer group.

Referring to reports that Saudi Arabia may increase its oil exports to replace Iranian oil in world markets, Jahangiri said: “Anyone trying to take away Iran’s oil market (share) would be committing great treachery against Iran and will one day pay for it.” The leader of Saudi Arabia promised Trump that he can raise oil production if needed and the country has 2 million barrels per day of spare capacity, the White House said on Saturday.

The Organization of the Petroleum Exporting Countries agreed with Russia and other oil-producing allies on June 23 to raise output from July, with Saudi Arabia pledging a “measurable” supply boost, but giving no specific numbers. “Any increase in the production by any member country beyond commitments stipulated in OPEC’s decisions would constitute breach of the agreement,” Zanganeh wrote in his letter, seen by Reuters and also reported by state media on Sunday. Iran had been pushing hard for oil producers to hold output steady as US sanctions are expected to hit its exports. But Saudi Arabia, OPEC’s biggest producer, was keen to raise output to meet calls from Trump and major consumers such as India and China to help cool oil prices and avoid shortages, according to Saudi officials including Energy Minister Khalid al-Falih.

Iran vowed Sunday to defeat US efforts to block its oil exports and warned rival producer Saudi Arabia it would never take Tehran’s “place” on the international oil market. “We will surely do something to thwart the US rallying cry that Iranian oil (exports) must be stemmed,” First Vice-President Eshagh Jahangiri said in statements broadcast on state television. “The (Iranian) government has a plan … and God willing we are certain that we will be able to sell as much oil as we want,” he said.

The United States exited from the nuclear deal between Iran and world powers in May and said it would reimpose economic sanctions on the Islamic republic and its business partners by Nov 4. On Tuesday a senior State Department official described tightening the noose on Tehran as “one of our top national security priorities”. The official warned countries including China and India, who are key buyers of Iranian oil, that they should stop purchasing crude from the country before the November deadline or face US sanctions. European countries have been attempting to negotiate exemptions for their firms, but the official confirmed that Trump intends to stick to his deadline. “We’re not granting waivers,” the official said.

This news has been read 8725 times!

Related Articles

Back to top button

Advt Blocker Detected

Kindly disable the Ad blocker

Verified by MonsterInsights