Saudi Arabia – the biggest oil producer of the Organization of the Petroleum Exporting Countries (OPEC) – and biggest oil-producer ally outside the group, Russia, have jointly rebuffed a veiled request by US President Donald Trump to implement an immediate increase in their production of crude oil.
Iran said it will veto any OPEC decision that harms its national interests and warned that some oil producers are trying to create an alternative suppliers’ forum that supports US policies hostile to Tehran.
Iran told Organization of the Petroleum Exporting Countries (OPEC) on Sunday no member country should be allowed to take over another member's share of oil exports, expressing Tehran's concern about Saudi Arabia's offer to pump more oil in the face of US sanctions on Iranian oil sales.
For more than two decades, OPEC has tried to avoid repeating a mistake that cost it dearly. In November 1997, at a meeting in Jakarta, Saudi Arabia convinced fellow oil producers to boost output, ignoring a crisis brewing in emerging markets.
Oil prices rose on Tuesday after Saudi Arabia said it cut production in July, adding to concerns over global supply as US sanctions against Iran curb its exports, though concerns over a slowdown in global economic growth kept a lid on markets.
Iran said on that Tuesday US President Donald Trump was mistaken to expect Saudi Arabia and other oil producers to compensate for supply losses caused by US sanctions on Iran, after OPEC production rose only modestly in July.
Iran dismissed the recent remarks by Saudi energy minister that the Joint Ministerial Monitoring Committee (JMMC) overseeing the OPEC/non-OPEC supply agreement will no longer track individual countries' compliance with quotas.
Iran’s oil minister on Saturday accused US President Donald Trump of insulting OPEC by ordering it to increase production and reduce prices, adding that Iranian output and exports had not changed as a result of US pressure.
Oil traded near its highest in 3-1/2 years on Thursday, boosted by potential disruptions to flows from Iran and the Middle East despite a fresh demand from U.S. President Donald Trump that OPEC cut prices.
Iran criticized Saudi Arabia's plan to raise oil output and pressure from the United States on Riyadh to do so, saying this was in breach of the OPEC decision last week and belittled the producer group.