Oil prices likely to rise due to U.S. sanctions on Iran and Venezuela

Iran slammed U.S. arrange of ignoring 60 years of OPEC’s history by suggesting Saudi Arabia boost its oil production in order to make up for Iran’s shortfall.

In a development that essentially sets the stage for a tough meeting at OPEC’s next meeting next month, Hossein Kazempour Ardebili, Iran’s OPEC governor came down heavily on the U.S. government for their request that Saudi Arabia pump more oil in order to cover for the drop in Iranian oil exports.

Iran has said, OPEC is unlikely to heed the appeal.

“It’s crazy and astonishing to see instruction coming from Washington to Saudi to act and replace a shortfall of Iran’s export due to their Illegal sanction on Iran and Venezuela,” said Kazempour while predicting that oil prices are likely to rise due to U.S. sanctions on Iran and Venezuela, just as they did the last time the U.S. sanctioned Iran’s oil exports.

“No one in OPEC will act against two of its founder members,” said Kazempour. “The U.S. tried it last time against Iran, but oil prices got to $140 a barrel.”

OPEC is set to meet its on June 22 in Vienna, in order to review its oil output policy.

Founded in 1960, the organization has a history of strong bonds which remained strong despite differences of opinion and even wars between some members.

Kazempour predicted OPEC would unite in opposition to the U.S. request.

“OPEC will not accept such a humiliation. How arrogant and ignorant one could be (to) underestimate the history of 60 years’ cooperation among competitors,” said Kazempour. “We have to live together – we cannot change geography but we must build better history”.

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