Saudi Arabia has taken oil market 'hostage', Iran says

Iran's OPEC representative said that Saudi Arabia and Russia have taken the world's oil market "hostage" as US-led pressure to severely curb Iran's oil exports mounts. 

Washington has said it wants to cut Iran's oil exports to zero following the reimposition of a second set of sanctions on 4 November. It is encouraging Riyadh and Moscow to pump more to offset the shortfall. 

"Russia and Saudi Arabia claim they seek to balance the global oil market, but they are trying to take over a part of Iran's share," said Hossein Kazempour Ardebili, according to the oil ministry's news agency SHANA.

"Trump's efforts to cut Iran's access to the global crude market has prompted Russia and Saudi Arabia to take the market hostage," he said.

Aredbili told Reuters that the US will find it challenging to cut off Iran's exports and that Russia and Saudi Arabia would in any case not be able to fill the shortfall.

He also accused both countries of welcoming sanctions to boost their own export revenues, warning that doing so would damage OPEC's credibility. 

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"Saudi Arabia and UAE are turning the OPEC into a US tool," he said.

Under pressure from US President Donald Trump, OPEC members agreed in June to pump an additional 1 million barrels per day to bring down oil prices. 

Iran's oil minister had previously warned its Saudi counterpart the OPEC supply pact from last year does not give member countries the right to raise oil production above their targets.

In July, Iran's oil minister reported that Saudi Arabia had pumped 10.489 million barrels per day in June, up 459,000 from May and above its target of just over 10 million bpd.

Agencies contributed to this report.

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