Reuters cited Mr Rostam Qasemi oil minister of Iran as saying that Saudi Arabia will not be able to replace Iranian oil supplies in the long run, in case of shortfalls due to sanctions against Iran.
Mr Ali Al Naimi oil minister of Saudi Arabia said that top oil exporter Saudi Arabia was determined to bring down high oil prices, reiterating there were no supply shortages in the global markets and the kingdom stood ready to use its spare production capacity if necessary.
Mr Qasemi said that “The level at which Saudi Arabia is producing at the moment, I think that’s a maximum. If it wants to produce any further it may be on a temporary basis in the long run that cannot last.”
Concern of a supply shortage due to production problems in some producing countries as US and European sanctions target exports from OPEC’s second largest producer Iran have helped lift Brent crude by about 13% this year.
He added that there had been no drop in production of Iranian crude despite unilateral sanctions by the EU and the United States. Iran’s crude is of high quality and will always have its own customers.