Iran calls for unity within OPEC following EU ban on Iranian crude

TEHRAN, Feb. 4 (MNA) – Iran's oil minister sent a letter to the head of OPEC, urging the organization’s members to cooperate to avoid strengthening the EU-backed sanctions of Iranian crude. Rostem Qasemi sent the letter to Abdul-Kareem Luaibi, who is also the Iraqi oil minister, in anticipation of the upcoming shake-up of global oil supply contracts. The letter said: “Some OPEC countries should pursue reasonable policy. Joint cooperation is important between all regional players.” The letter urges the OPEC members not to aggravate the oil embargo against the Islamic Republic by making up the shortfall in supplies caused by the ban or reduction of Iranian crude imports by a number of governments. Qasemi’s move comes hot on the heels of announcements by Saudi Arabia, the UAE and Kuwait that they will increase their oil exports to supply Iran’s old customers, thus strengthening the EU-backed sanctions of Iranian crude. On January 23, EU foreign ministers agreed on Iran's oil embargo, banning EU countries from buying Iranian oil in six months. When current oil contracts for Iran's oil expire, about 27 countries that make up the EU cannot sign new ones. The new sanctions will also freeze some of the Iranian central bank's assets. In total, Iran exports about 2.2 million bpd of oil. Iran warned Persian Gulf Arab neighbors on January 15 that they would suffer consequences if they raised oil output to replace Iranian crude. Iranian OPEC Governor Mohammad Ali Khatibi had said Tehran would regard any move by neighboring Persian Gulf Arab oil exporters to make up for Iranian crude as an unfriendly act. "If (they) give the green light to replacing Iran's oil, these countries would be the main culprits for whatever happens in the region – including in the Strait of Hormuz," Khatibi said, referring to the narrow sea channel through which a third of the world's oil tanker traffic passes. "Our Arab neighbor countries should not cooperate with these (U.S. and European) adventurers... These measures will not be perceived as friendly," he said.