Iran has repeatedly � and yet unsuccessfully � asked Saudi Arabia to trim its oil production this month so that Tehran could make some cash on higher crude prices.
MOSCOW, January 18 (Sputnik)�� Iranian authorities have repeatedly requested Saudi Arabia to�lead the effort to�stabilize the global price of�crude oil in�order to�aid the oil-dependent economies of�the region, including the Islamic Republic itself. Iran approached the Saudis with�a similar plea on�January 2, stating that Riyadh�s earlier decision not to�cut oil production was erroneous and to�no avail so far."We have told Saudi Arabian officials through�diplomatic channels that they should prevent the enemies of�the region from�harming the growing economies of�regional countries," Hossein Amir-Abdollahian, Iran�s Deputy Foreign Minister said�as�quotedby�Xinhua.The most recent direct negotiations between�the representatives of�Iran ad Saudi Arabia happened at�the sidelines of�the OPEC meeting.

"We expect Saudi Arabia to�play its major role in�crude prices to�help the regional countries," Iran�s Deputy Foreign Minister added.

He also said that, according to�Tehran�s official viewpoint, the decline in�oil prices has come about�by result of�underhand practices of�nations hostile toward�the Islamic Republic, which might be considered a thick innuendo at�the United States� record crude output during�the last year.

Previously, Abdollahian had alreadyexpressed hopes�that the Saudis would trim crude production in�order to (hopefully) stabilize prices. However, despite�being the world�s largest oil producer and head of�the once-powerful international oil cartel, OPEC, Saudi Arabia is hardly able to�stop the prolonged plunge in�crude prices, as�the shale oil coming from�North America is ready to�fill any market niche it can find.

According to�Abdollahian, Iran and the Saudis have had some discussions regarding the situation in�the oil market, but, as�stated by�Xinhua, Riyadh has repeatedly declined any pleas and demands to�cut oil production. The reason behind�such behavior is that the Saudis fear losing their markets share to�the Americans and would rather suffer losses of�lower crude prices.

Yesterday Tehran announced the Islamic Republic�s Foreign Minister Mohammad Javad Zarif is planning on�visiting Riyadh for�negotiations.
"We were making preparations for�Zarif's visit to�Saudi Arabia and a schedule had been set for�his trip, but�unfortunately, sharp and unexpected remarks of�Saudi Foreign Minister prevented this visit," Abdollahian said.

Shiite Iran and the Sunni Saudi Arabia are estranged politically as�a result of�their sectarian differences. Iran is an ally of�the Alawite Syrian regime of�Bashar al-Assad. Tehran also supports the Shiite Houthi rebels in�Yemen. The Saudis, on�their part, officially support the Sunni cause in�the neighboring countries, while there have also been allegations of�the non-official Saudi funding of�such Sunni groups as�al-Qaeda and Islamic State, both the archenemies of�the Shiites.

The Iranian economy is extremely reliant on�income generated by�oil exports, however, the breakeven price for�Iran would be round�about $126/bbl in�2014, while for�Saudi Arabia the breakeven stood at $97/bbl. Besides, the Saudis have accumulated extensive FX reserves, which Iran, a subject to�international sanctions�due to�its nuclear ambition, is lacking.

By Sputnik News

 

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