29 Mar 2024
Monday 30 June 2014 - 17:09
Story Code : 104106

Iran, Saudi Arabia to replace Iraq in oil markets

TEHRAN, June 30 (MNA) With the rising trends in crude prices as a result of unrest in Iraq, Iran and Saudi Arabia have now embarked on a race to compensate the Iraqi oil in the markets.


Iran joined its traditional rival, Saudi Arabia, in saying that it would increase its crude oil production to compensate for possible Iraqi oil exit from the markets.

Oil prices had a soaring trend during recent few weeks, hitting new highs of $ 110 per barrel. The most important contributing factor is unrest in the Middle East, especially terrorist actions in Iraq. Major European and Asian oil giants have left Iraq within few weeks. Despite the crisis in Iraqi oil industry, OPEC has ruled out the possibility of any emergency meeting, believing that the oil market lives a normal life.

Saudi Arabia, as the greatest producer of crude has met the US officials to discuss further rise in its production. Saudi King Abdullah received John Kerry, Secretary of State last week in Riyadh and they discussed Iraq and global oil markets.

Irans National Oil Company has officially thrown down the gauntlet to Saudi Arabia in replacing Iraqi oil in the markets. Any cuts in Iraqi supply of oil would mean the new round of race between Iran and Saudi Arabia to raise exports of the black gold.

Irans oil minister, Namdar Zanganeh, had formerly called for a place for Iranian barrels of oil in the markets. Zanganeh had said that Iran would raise its oil production up to 4 million barrels per day if sanctions removed.

By Mehr News Agency

 

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