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 tolead the effort tostabilize the global price ofcrude oil inorder toaid the oil-dependent economies ofthe region, including the Islamic Republic itself. Iran approached the Saudis witha similar plea onJanuary 2, stating that Riyadhs earlier decision not tocut oil production was erroneous and tono avail so far."We have told Saudi Arabian officials throughdiplomatic channels that they should prevent the enemies ofthe region fromharming the growing economies ofregional countries," Hossein Amir-Abdollahian, Irans Deputy Foreign Minister saidasquotedbyXinhua.The most recent direct negotiations betweenthe representatives ofIran ad Saudi Arabia happened atthe sidelines ofthe OPEC meeting.
"We expect Saudi Arabia toplay its major role incrude prices tohelp the regional countries," Irans Deputy Foreign Minister added.
He also said that, according toTehrans official viewpoint, the decline inoil prices has come aboutby result ofunderhand practices ofnations hostile towardthe Islamic Republic, which might be considered a thick innuendo atthe United States record crude output duringthe last year.
Previously, Abdollahian had alreadyexpressed hopesthat the Saudis would trim crude production inorder to (hopefully) stabilize prices. However, despitebeing the worlds largest oil producer and head ofthe once-powerful international oil cartel, OPEC, Saudi Arabia is hardly able tostop the prolonged plunge incrude prices, asthe shale oil coming fromNorth America is ready tofill any market niche it can find.
According toAbdollahian, Iran and the Saudis have had some discussions regarding the situation inthe oil market, but, asstated byXinhua, Riyadh has repeatedly declined any pleas and demands tocut oil production. The reason behindsuch behavior is that the Saudis fear losing their markets share tothe Americans and would rather suffer losses oflower crude prices.
Yesterday Tehran announced the Islamic Republics Foreign Minister Mohammad Javad Zarif is planning onvisiting Riyadh fornegotiations.
"We were making preparations forZarif's visit toSaudi Arabia and a schedule had been set forhis trip, butunfortunately, sharp and unexpected remarks ofSaudi Foreign Minister prevented this visit," Abdollahian said.
Shiite Iran and the Sunni Saudi Arabia are estranged politically asa result oftheir sectarian differences. Iran is an ally ofthe Alawite Syrian regime ofBashar al-Assad. Tehran also supports the Shiite Houthi rebels inYemen. The Saudis, ontheir part, officially support the Sunni cause inthe neighboring countries, while there have also been allegations ofthe non-official Saudi funding ofsuch Sunni groups asal-Qaeda and Islamic State, both the archenemies ofthe Shiites.
The Iranian economy is extremely reliant onincome generated byoil exports, however, the breakeven price forIran would be roundabout $126/bbl in2014, while forSaudi Arabia the breakeven stood at $97/bbl. Besides, the Saudis have accumulated extensive FX reserves, which Iran, a subject tointernational sanctionsdue toits nuclear ambition, is lacking.
By Sputnik News
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