Iran warns Arab oil producers on replacing its oil

TEHRAN,Jan.16(MNA)--Iran warned Arab oil producers against boosting production to offset any potential drop in Tehran's crude exports in the event of an embargo affecting its oil sales. Iran warned its Arab neighbors on Sunday not to raise crude output to replace Iranian oil in the event of an embargo by the European Union, Tehran's OPEC Governor Mohammad Ali Khatibi was quoted as saying. "The consequences of this issue are unpredictable. Therefore, our Arab neighbor countries should not cooperate with these adventurers and should adopt wise policies," Khatibi said. The U.S. recently imposed sanctions targeting Iran's central bank and, by extension, refiners' ability to buy and pay for crude. The European Union is also weighing an embargo on Iranian oil, while Japan, one of Iran's top Asian customers, didn’t pledged to buy less crude from the country. Mohammad Ali Khatibi, Iran's OPEC governor, said that attempts by Persian Gulf nations to replace Iran's output with their own would make them an "accomplice in further events." "These acts will not be considered friendly," Khatibi said, adding that if the Arab producers "apply prudence and announce that they will not participate in replacing oil, then adventurist countries will not show interest," in the embargo. Saudi Arabia, the world's largest oil producer and a close U. S. ally, had claimed that it was ready to raise its output to accommodate global market needs, but experts say no member of the 12-nation Organization of the Petroleum Exporting Countries has significant spare capacity to replace Iran oil exports. Oil Minister Ali Al-Naimi appeared to try to further clarify the country's position in comments published Sunday in the daily Al-Ektisadiyah newspaper. "We never said that Saudi Arabia is trying to compensate for Iranian oil in the case that sanctions (are enacted)," Al-Naimi was quoted as saying. "We said that we are prepared to meet the increase in global demand as a result of any circumstances." Iran's warning introduces a new layer of complication to an issue that has the potential for broad regional and global fallout. "If these countries make a mistake and give the green light, this will be a historic green light," Khatibi said. Any attempt by Iran to close the Strait of Hormuz, through which a sixth of the world's oil flows, would also affect the export abilities of the major Persian Gulf producers, including Saudi Arabia, Iraq, the United Arab Emirates, Kuwait and Qatar. While momentum appears to be building for the sanctions by the West, China, another major buyer of Iranian oil, has come out against the measures.