Trump’s order for OPEC to reduce prices is insulting - Iranian oil minister

US President Donald Trump has been pressuring OPEC and in particular Saudi Arabia to ramp up output by as much as 2 million barrels a day

US President Donald Trump has been pressuring OPEC and in particular Saudi Arabia to ramp up output by as much as 2 million barrels a day

Venezuela, which has enormous reserves but is also suffering under, among other problems, crippling USA sanctions, is shrinking out of the world oil market.

The president of OPEC defended the oil producer group on Monday against U.S. President Donald Trump's recent demands for higher oil output, saying OPEC does not shoulder the blame.

The U.S.is demanding zero purchases of Iranian oil by November, and if that were possible, oil could spike above $120 per barrel, given global crude supplies, says Bank of America Merrill Lynch.

This is already seen as part of a political campaign by the United States to pressure the kingdom to ramp up oil production quickly to make up for the loss of Iranian barrels which the Trump administration has threatened to bring down to zero.

Abu Dhabi: Saudi Arabia has told Opec it pumped 10.488 million barrels per day (bpd) of crude oil last month, an increase of 458,000bpd from the level it said it produced in May, Opec sources told Reuters on Thursday.

Saudi Arabia accounted for nearly two-thirds of the reported OPEC spare capacity (2.02 million bpd), with smaller volumes held by Iraq (330,000 bpd), United Arab Emirates (330,000 bpd) and Kuwait (220,000 bpd).

"An increase in production of this magnitude would wipe out the bulk of remaining spare capacity, globally".

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On Saturday, Zanganeh was quoted as saying that the United States president had insulted OPEC by trying to force Saudi Arabia to increase its production.

Last week, Bloomberg reported that "a complete shutdown of Iranian sales could push oil prices above $120 a barrel if Saudi Arabia can't keep up". The unofficial leader of the Organisation of Petroleum Exporting countries has never pumped more than 10.6 million barrels per day on average over a single month, according to BAML.

Some observers question whether such high rates of production could be implemented quickly and sustained for any length of time.

"Maximum production would require opening the chokes on existing wells and bringing previously shut-in wells back into service", Reuters added.

OPEC agreed in June on a modest increase in oil production starting in July after its leader, Saudi Arabia, persuaded arch-rival Iran to cooperate, following calls from major consumers to curb rising fuel costs.

Stringent sanctions on Iran will take both Saudi Arabia and the oil market into the unknown.

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