Iranian OPEC Rep Dismisses US Threat to Use Strategic Reserves to Lower Oil Prices
The OPEC representative from Iran has dismissed the United States’ renewed “threat” to use its strategic crude reserves in an effort to lower current crude prices. The representative sees it as a strategy with only a short-term effect, anticipating more price increases during the coming fall and winter.
Seyyed Mohammad Ali, the representative of Iran to OPEC, insisted this new ploy is nothing more than an attempt to lower the continuously increasing crude price per barrel in the world market that is definitely moving higher in the long term.
Furthermore, the United States will eventually need to refill its strategic crude reserves through the import of more quantities of oil, thereby causing to a demand increase for the main energy source and increased per barrel oil prices.
But, Khatibi reiterated that OPEC may consider a retaliatory move if the US follows through with what is so far considered just a threat. In the meantime, the main reason behind the current crude prices increases was the concern of major consumers regarding uninterrupted stocks of the commodity.
He also talked about ongoing developments in the Middle East and the Persian Gulf, and the lower oil output from the North Sea as other factors that contribute to the rise in the current crude prices.
The per barrel oil prices recently reached a new high with WTI, moving to its highest rate in just over three months in the midst of renewed threats from Israel to wage war against Iran.
The main contract in New York for September delivery moved up to as much as $96.53, the highest rate since the 11th of May. In London’s midday trading, the crude price per barrel of Brent for delivery in October gained 66 cents to $114.37.
The prices of crude have been rising after the United States sanctioned the energy sector of Iran and in response to the persistent publicity campaign of Israel threatening a military strike versus Iran.