X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 4 hours IS SAUDI ARABIA SENDING A MESSAGE TO BIDEN
  • 1 day America Makes Plans to Produce Needed Rare Earth Minerals Domestically
  • 8 hours Texas forced to have rolling black outs, primarily because of large declines in output from fossil fuel power plants
  • 1 day U.S. Presidential Elections Status - Electoral Votes
  • 3 days Former BP Exec "Biden not in war against oil" . . Really ?
  • 3 days Here we go - again: plug-in hybrids cost motorists more than what they were told
  • 3 days Texas Supply Chain Massacre
  • 1 day Top Conservative Lawyer Says Trump Can Stand Trial
  • 1 day “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 3 days An exciting development in EV Aviation: Volocopter
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Ayatollah Khamenei Accuses OPEC Members Of Waving The Oil Weapon

Ayatollah Ali Khamenei, Iran’s Supreme Leader, accused unnamed OPEC members of using oil as a weapon to the benefit of the U.S. The accusations were leveled via Twitter, following Khamenei’s meeting with Venezuela’s President Nicolas Maduro over the weekend.

In a series of tweets, Khamenei started by saying that the “drop in oil prices is a coercive measure against countries independent of the US,” then went on to remind his audience of the 1973 oil embargo from several Middle Eastern states that led to accusations from the West about “the political use of oil”, adding that “Today, same countries along with some OPEC members & regional states are using oil as a weapon in total compliance with US policies.”

The Khamenei-Maduro meeting was on the occasion of Venezuela taking over the presidency of the Non-Aligned Movement from Iran. Before that, Maduro met with Iran’s President, Hassan Rouhani, who declared the country’s support for “any measure” that aims to restore the balance on the oil market, adding that it necessitated coordination and cooperation among not just OPEC members, but external producers as well.

One of the OPEC members that Iran’s Supreme Ruler mentions in his tweets is almost certainly Saudi Arabia, which in April refused to take any steps to curb its oil output unless Iran took reciprocal steps, Reuters reported at the time, saying the Saudis, who had for decades rejected claims that they were using oil as a weapon, had done just that in Doha. Related: Russia Sends Mix Signals To Oil Markets After Saudi Meeting

Ironically, the effectiveness of the oil weapon seems to be significantly overrated. According to a 2012 publication by the Oxford Institute for Energy Studies, using oil as a bargaining chip seldom works, as Iran itself proved in that same year, after the U.S. imposed economic sanctions on it because of its nuclear program.

The trouble with oil-related threats, according to the OIES, is that it pretty hard to cut supply to the extent that it makes a difference for the consumers the weapon is pointed at. At the same time, it leads to loss of oil revenues, and most major oil producers and exporters are heavily dependent on these revenues, as Saudi Arabia has found after months of stalling all efforts to bring oil markets back to a balance.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News