Reducing Saudi oil supply to affect Iran: energy expert

Oil&Gas Materials 14 November 2018 15:33 (UTC +04:00)

Tehran, Iran, Nov. 14


Saudi Arabia's pledge to cut oil supply will affect Iran's economic situation, says an Iranian energy expert.

"Saudi Arabia is seeking to reduce oil supply to control oil prices that have fallen in recent days," energy expert Behrouz Namdari told Trend. “Saudi Arabia is seeking to stop further decline in prices.”

Saudi energy minister, Khalid Al Falih, has announced that Saudi Arabia will reduce oil supply next month in response to lower demands, and more cuts could follow next year.

“Of course, this Saudi decision will affect Iran. Indeed, if Iran's revenues increase as a result of lower supply, oil sanctions would be hampered," said Namdari.

"Lately, there has been disappointing OPEC news,” he said on the rumor about Saudi Arabia's withdrawal from OPEC. "Although Saudi Arabia itself has denied the news."

"Of course, Saudi Arabia is Iran's rival and Russia is somehow Iran's ally,” he said about Russia and Saudi Arabia's energy cooperation, and added that cooperation between Russia and Saudis is not pleasant to Iran at all.

“This cooperation, whether military, political or energy, is not actually in the interests of Iran," Namdari said.