Economy

US aims to reduce Iran’s oil revenue to zero

US aims to reduce Iran’s oil revenue to zero

The statement said the kingdom will coordinate with other producers.

Referring to reports that Saudi Arabia may increase its oil exports to replace Iranian oil in world markets, Jahangiri said: "Anyone trying to take away Iran's oil market (share) would be committing great treachery against Iran and will one day pay for it".

The president, in an interview with Fox News' "Sunday Morning Futures with Maria Bartiromo", also said he would not complete a new NAFTA trade deal with Canada and Mexico until after the November congressional elections. The U.S. president and the Saudi King spoke on Friday, according to the White House.

Trump was not specific on whether the additional 2 million barrels was a per-day figure - but worldwide daily demand is nearing 100 million bpd.

"We are confident that there is sufficient global spare oil production capacity", he added.

First Vice President Es'haq Jahangiri said on Monday that Iran is able to counter the looming USA sanctions, noting that those at the White House who think they can halt Iran's oil export are living in "illusion". While the comments were ambiguous, Iranian officials in the past have threatened to block the Strait of Hormuz, a major oil shipping route, in retaliation for any hostile US action.

The U.S. government plans to shut Iran's oil exports out of the market from November, demanding that all countries stop buying its oil.

Some major importers of Iranian crude have sent mixed signals on their willingness to abide United States sanctions, particularly as inventories remain low.

Three members of the Organization of Petroleum Exporting Countries - Libya, Iran and Venezuela - are posting real, or have expected, production declines.

US President Donald Trump sent a message on Twitter that he asked Saudi Arabia to increase oil output by 2 million barrels because "prices to (sic) high".

Oil futures fell Monday as supplies from Saudi Arabia and Russian Federation rose while economic growth stumbled in Asia amid escalating trade disputes with the United States. Analyst expectations were for a draw of 1 million barrels.

An International Energy Agency scenario projects oil production falling by around 1.5 million bpd due to the loss of Iranian and Venezuelan oil.

"Also, taking a broad range of estimates from IEA, EIA and others, Saudi held spare capacity in the range of 1.3 - 2.1 mb/d when oil production was ~10 mb/d". "Of course. That's what we're doing, absolutely", he said.