We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now!— Donald J. Trump (@realDonaldTrump) September 20, 2018
OilPrice.com: Iran: We Won’t Let OPEC Boost Production
OPEC does have a meeting in the coming days in Algiers to assess the state of the oil market, and decide on next steps. But one of the largest near-term challenges for OPEC is balancing the oil market in the wake of lost barrels from Iran – a key factor driving up prices and also a fact that seems to be lost on the American President.
There are no clear solutions for OPEC+ that leave the oil market satisfied while also maintaining group cohesion.
The obvious course of action is to allow for higher production levels. But there is no way to do this while also getting all parties on board. Iran’s oil minister said that any change to Tehran’s allotment would be blocked. “I will definitely veto any decision that threatens our national interest,” Bijan Zanganeh said in an interview with reporters from S&P Global Platts and Bloomberg News. “Anyone who says they will compensate for the shortfall in the market is speaking against Iran. This is a 100% political statement, not economic.” Because any OPEC agreement requires unanimous consent, Iran could block any changes to the formal oil production cut deal.
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WNU Editor: To makes its point, Iran is doing this .... Iran puts on 'show of strength' military exercise in Gulf (Reuters). My prediction .... OPEC will publicly state that they will not increase OPEC production to replace Iranian oil lost due to sanctions, but member states will increase production due to the high prices that are now on the market.
Update: Trump Hit Iran With Oil Sanctions. So Far, They're Working. (The New York Times)
