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FXEmpire | February 7 2012 7:35 EST
Just yesterday, the price of oil continued to fall as threats from Iran died down and most of the world ignored the noise from the mid east nation. The US and her Nato alliance let Iran know in direct terms that they would not allow Iran to blockage waterways, making Iranian threats baseless.
Another Day Another Threat From Iran
Iran was left with supply its oil primarily to India and China, who would demand that Iran reduce their price, since they only had limited markets.
Once again today, Iran has stepped up their rhetoric; they issued warnings to Gulf neighbors not to make up for any shortfall in its oil exports under new Western sanctions.
“We would not consider these actions to be friendly,” Mohammad Ali Khatibi was quoted as saying by the Sharq newspaper.
“If the oil producing nations on the Persian Gulf decide to substitute Iran’s oil, then they will be held responsible for what happens,” he said.
He went on to say Iran would consider any Gulf member of the Organization of Petroleum Exporting Countries that “cooperates with the Western nations in substituting Iranian oil to be accomplices.”
If they did so, “one cannot predict the consequences,” he was quoted as saying.
Khatibi added that, if the Gulf nations do not cooperate with the West by pumping more oil, “then its 90 percent probable that nothing would occur.”
The warning comes as the US and the EU step up sanctions to curb Iran’s oil exports and revenue.
Iran is the second largest oil exporter in OPEC, after Saudi Arabia, and it depends on petroleum revenues for more than half its state income.
French Foreign Minister Juppe said last today that unnamed oil producing countries will boost their output to make up for a planned EU ban on Iranian oil.
“Other countries are ready to increase production to avoid an effect on prices. We have made discreet contacts in this direction. The producers don’t want to talk about it, but they are standing ready,” he said.
Western nations and others participating in the worldwide boycott and embargo of Iran, have shown no worries about the effects Iran will have on world supply or on any idle threats. Iran is simply alienating one of their strongest supporters in the past and neighbors. Oil is trading at 97.17 up a bit from yesterday but down for the week.
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