Future of OPEC at stake as a result of new American bans on Iran’s oil exports

Tabnak – As the US decision not extend the sanction waivers for the purchasers of the Iranian oil has taken effect, Tehran warns that new restrictions could threaten the very existence of OPEC as the main international gathering of oil-importing countries.

In this vein, Iranian Oil Minister Bijan Namdar Zanganeh warned the Organization of the Petroleum Exporting Countries (OPEC) could collapse due to unilateral moves by some of its member states.

Speaking to reporters after a meeting with OPEC Secretary General Mohammed Sanusi Barkindo in Tehran on Thursday, Zanganeh said in the session, he discussed the problems facing the global oil market. “I told Mr. Barkindo that OPEC is at risk due to unilateralism by some members and that the organization is likely to collapse,” he added.

“Iran is a member of OPEC because of its interests, and if some other members want to threaten Iran, Iran will not let it go unanswered,” the oil minister went on to say.

Meanwhile, the OPEC chief says it is "impossible" to eliminate Iranian crude from the global market. Mohammed Barkindo was speaking Thursday on the sidelines of the 24th International Oil, Gas, Refining and Petrochemical Exhibition in the Iranian capital, Tehran.

Barkindo further pointed to the challenges facing OPEC member Iran after Washington tightened its oil sanctions against the country, saying he was certain that Tehran would successfully overcome the issues thanks to the experience it has gained in dealing with such restrictive measures over the past years.

Asked whether Iranian crude could be excluded from the market, the OPEC secretary general replied, “There is no need to repeat it. It is impossible to eliminate Iranian oil from the market.”

The remarks came as US President Donald Trump’s administration on Thursday stopped issuing waivers that allowed some countries to continue buying Iranian oil.

In the aftermath of Washington’s decision, oil prices quickly jumped to their highest levels since last November amid worries about how the termination of American waivers will affect global crude supply, as many observers believe Riyadh and Abu Dhabi exaggerate their ability to make up for any shortage.

Also on Thursday, Turkish Foreign Minister Mevlut Cavusoglu warned of the repercussions of the American sanctions on Iran, saying they negatively affect the entire region, including his own country.

Regarding the expiration of the waivers, the top Turkish diplomat said his country cannot quickly abandon Iranian oil. "The refineries in Turkey are not adapted for Iraqi oil," said Cavusoglu.

Last week, China slammed the US sanctions, saying the country's dealings with Tehran were in accordance with international law, "reasonable and legitimate". Bejing also warned that Washington's decision would “intensify turmoil” in the Middle East and in the international energy market.