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Iran says U.S.-caused oil spike will slow growth, add to tariff impact

Reuters  |  LONDON 

By Alex Lawler

LONDON (Reuters) - A rise in prices caused by the United States' sanctions policies will hurt economic growth in China, and other consumers, much like Donald Trump's trade measures, a top Iranian said on Thursday.

Iran's OPEC also told the rise in output by OPEC and its allies, after pressure by Trump to do so, was only 170,000 barrels per day (bpd) in June and would not grow much in 2019, also weighing on economic growth.

While Trump has accused the Organization of the Petroleum Exporting Countries of driving up prices, Iran, OPEC's third-largest producer, says the has caused this by imposing sanctions on and fellow OPEC member

"The Trump is causing are leading to a in the EU, Japan, and India, impacting their economic growth just like the tariffs imposed upon them, also enabling and the UAE to pay their arms bill to the U.S.," Iran's Ardebili said.

The comments underline the still-simmering tensions after OPEC's meeting last month, when the group agreed to return to full compliance with earlier agreed cuts, after months of underproduction by OPEC countries including

said the deal allowed countries able to produce more, such as itself, to go ahead and do so, to make up for shortfalls elsewhere. strongly disagreed and criticised Saudi plans to boost output.

said Trump may be disappointed by the scale of the production increase so far and voiced scepticism and could add much more oil in 2019.

"These days Saudi Arabia are supplying out of stocks not additional production," he said. "is also unable to do much not even 200,000 barrels per day - all are talking few barrels next year and the world will shrink and all indexes will be down."

"The June versus May increase in OPEC and non-OPEC production was only 170,000 bpd. Does this surprise you, Mr "

The International Energy Agency, in a report on Thursday, put the combined month-on-month increase at 230,000 bpd.

If were able to develop its liquefied (LNG) industry to its full potential, could help reduce reliance on Russia, said - something that the would favour.

"Trump is concerned about EU and German dependence on Russian gas. Why do Trump and American companies together with EU companies not invest in Iranian LNG for Iran holds the largest "

The U.S. had launched a sharp public attack on on Wednesday for supporting a with Russia, saying had become "a captive to Russia".

(Reporting by Alex Lawler; Editing by)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 12 2018. 21:01 IST
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