Iran is the third biggest producer of oil in the Organization of the Petroleum Exporting Countries (OPEC). He urged oil consuming nations not to rely on OPEC, stressing the importance of energy independence. "It's good for peace and it's good for the shape of the worldwide price of oil". He called on other nations not to rely on OPEC, lamenting the dependence Germany has on Russian Federation.
It could cause Washington to take extraordinary steps, including the use of the Strategic Petroleum Reserve, to cool down the crude oil and other fuel prices ahead of the US mid-term elections. By New Year, Mr. Luckok said, as markets tighten, the price could go as high as $100. The refusal of OPEC to raise production negates the call by Trump for action to raise global supply.
Brent crude prices rose to a almost four-year high above above $82 a barrel on Tuesday after OPEC and its allies said they would stick to the plan they agreed to in June. The news was bearish for oil, but some analysts expressed skepticism about the efficiency of the mechanism on the grounds that the USA could simply expand the scope of the sanctions to include barter deals between the European Union and Iran.
"It would be good for the price of oil for Iran to be able to sell it", the French leader said.
The so-called "Opec+" group, which includes Russia, Oman and Kazakhstan, met over the weekend to discuss a possible increase in crude output, but the group was in no rush to do so.
The updated report comes as U.S. President Donald Trump and Iranian President Hassan Rouhani exchanged taunts at the United Nations General Assembly on Tuesday. Washington wants to reduce Iran's oil exports effectively to zero with renewed sanctions in November and has been encouraging its allies to cut their oil imports from Iran.
The bank's analysts said in a note Tuesday that "another supply catalyst beyond Iran would likely be needed for prices to meaningfully break to the upside". With oil prices hitting a four-year high of $82 per barrel, the U.S. leader slammed the OPEC oil cartel after Saudi Arabia and Russian Federation rejected calls to increase production amid looming United States sanctions on Iran's oil exports.
"We're on the verge of some significant volatility in Q4 2018 because depending on the severity and duration of the Iranian sanctions, the market simply does not have an adequate supply response for a 2 million barrel a day disappearance of oil from the markets", Jaeggi said.