Tehran, Iran, Oct.16.
Trend:
If Saudi Arabia decides to reduce only 10 or 20 percent of its oil production, the market will see a sharp rise in prices, Secretary to the Environment and Energy Commission of the International Chamber of Commerce (ICC) in Iran Narsi Ghorban told Trend.
Ghorban made the remarks citing the Saudi threat to reduce oil production to put pressure on the United States as the Kingdom's relations with the US have deteriorated rapidly after Jamal Khashoggi, a journalist who resided in the US, disappeared this month after visiting the Saudi consulate in Istanbul.
Turkey reportedly believes the Washington Post journalist and critic of the Saudi administration was deliberately killed inside the building and his body removed. Riyadh has dismissed the claims.
The stock market in Saudi Arabia plunged on Sunday, and analysts believe oil could be the next to be affected.
US President Donald Trump said on Saturday there would be "severe punishment" for Saudi Arabia if it turned out that Khashoggi was killed in the consulate. But the Middle Eastern country said on Sunday it would retaliate to possible economic sanctions taken by other states over the case, the state news agency SPA reported quoting an official source.
"Of course, the decline in oil production is a threat that Saudi Arabia has indirectly made to the West, and such threats are generally considered bad threats, and it means that Saudi Arabia will enter a stage that will surely have a reaction from the other side," Ghorban said.
"If the price of oil rises, it will increase Iran's revenues, although Iran's exports are reduced," he said.
Citing the potential impact of rising oil prices and subsequently gasoline in the United States on mid-term elections, he said it should be noted that Saudi Arabia has not announced that it will reduce its production.
"Also, Saudi Arabia will reduce its production and raise oil and gasoline prices over at least one month, and by then the US election will end."