First Vice President Es’hagh Jahangiri said on Tuesday that due to the US sanctions, Iran is in readiness for coping with the unprecedented drop in oil prices.
Making the remarks in a meeting with senior officials from the ministry of road, Jahangri said, “no country, even the US with a 25-percent share of the world’s gross production, can remain safe from the negative economic impacts of the coronavirus.”
“For sure, oil producers such as Saudi Arabi will face serious economic problems,” he added noting that according to Saudi officials the country would deal with serious difficulties with oil prices less than $70 per barrel.
Jahangir added that even the output cut by OPEC and non-OPEC countries could not avert the downfall of prices.
US oil markets have fallen back below zero as the coronavirus crisis continues to take a toll on oil demand.
The US oil price – which turned negative for the first time in market history on Monday– climbed above zero overnight before slumping back to -$4.29 a barrel as trading began in Europe on Tuesday.
A negative price means that traders are paying customers to take the oil off their hands and it is the result of the US running out of space to store a glut of crude caused by the global coronavirus lockdown.
The West Texas Intermediate (WTI), the benchmark for US crude prices, crashed to -$40 a barrel on Monday as oil storage facilities filled to the brim and producers were forced to pay buyers to take their barrels.
