Iranian oil minister Bijan Zanganeh on Tuesday said these sanctions, along with those imposed on Venezuela, were to blame for recently rising oil prices, and urged OPEC not to cave in to US President Donald Trump's lobbying for more supplies to cool the market.
Saudi Arabia has enough spare capacity to offset those losses and keep a lid on prices, but Energy Minister Khalid Al-Falih acknowledged on Thursday that such a move isn't politically palatable for his fellow OPEC members.
Mohammed Barkindo, Opec secretary general.
When the oil price is too high, economic growth is constrained as individuals and companies feel compelled to cut spending.
The upbeat Saudi comments contrasted with the somber tone from the Iranian delegation.
The China stock market turned lower again on Thursday, one session after it had halted the four-day losing streak in which it had stumbled nearly 175 points or 5.8 percent.
Given the production restraints in some countries, the one million barrels per day proposal would in reality end up adding several hundred thousand barrels to the market.More news: Supreme Court rules that states can collect sales tax from online retailers
Asked whether he supports increasing production, he replied: "Some of the countries are against any increase, and ask them".
So why work towards a deal with Iran if they aren't necessary for Saudi Arabia and Russian Federation to increase supply?
Zanganeh told CNN on Wednesday that if OPEC returned to regular compliance, the real supply increase from the group would constitute only around 460,000 bpd.
But in practice it would mean a much smaller boost of less than a 10th of that amount, effectively from Saudi Arabia. If we lose a million bpd of output from Venezuela and Iran in the fourth quarter, where will all these barrels come from?
The correction in prices have been a continuing trend since May 23, when prices breached the $80 mark after the announcement of new United States sanctions on Iran and ongoing supply disruptions in Libya and Venezuela. Iran faces constraints on its oil exports after Trump reimposed sanctions on May 8.
When OPEC and its allies, which include Russia, Kazakhstan and Mexico, agreed to cut output in late 2016, they announced a 1.8 million-barrel-a-day reduction.
US benchmark oil prices were slightly lower Thursday while oil prices in Europe and Asia were down sharply, as investors expect a likely decision Friday by global producers to pump more oil will impact overseas markets more than USA markets.
Trump's involvement makes it hard for Tehran to accept a compromise. Consecutive increase in inventory is not good for a stable market price so also is a sudden fall in inventory due to higher oil price. German carmaker Daimler cut its earnings forecast late on Wednesday, saying tariffs on cars sent from the United States to China would hurt Mercedes-Benz vehicle sales.