OPEC Secretary General Mohammed Barkindo (L) and Iranian Oil Minister Bijan Zanganeh, Tehran, May 2, 2019

Betraying Iran’s concern over its troubled economy and US sanctions, Oil Minister Bijan Zanganeh has threatened fellow members of the Organization of Petroleum Exporting Countries.

Zangeneh said on Thursday, “Iran is part of OPEC due to its interests and if members of the organization seek to threaten it, Iran will not leave them unanswered.”

The Minister issued the comment after a meeting with OPEC Secretary-General Mohammed Barkindo in Tehran on the sidelines of the Iran International Oil, Gas, Refining, & Petrochemical Exhibition.

“I told Barkindo that OPEC is threatened by the unilateralism of some of its members and that it’s possible that the organization may collapse,” said Zangeneh.

He did not detail the specific threat to Iran or possible Iranian retaliation. However, OPEC members such as Saudi Arabia have increased output to help cover the 60% fall in Tehran’s oil exports amid the comprehensive US sanctions imposed in November.

The Trump Administration is seeking a further reduction, ending sanctions waivers to Iran’s top customers in May. Eight countries will be affected, including China, India, South Korea, Japan, and Turkey.

About a third of Iranian Government revenue comes from oil sales, as it battles problems with production, investment, trade, employment, and a historically-weak currency.

Immediately after the US announcement last week, the Supreme Leader insisted, “We are able to export as much oil as we need and wish.” President Rouhani followed with a similar proclamation, and Friday Prayer clerics, guided by the Supreme Leader’s office, said there was no problem as Iran did not need the oil income anyway.

See Iran Daily, March 24: Supreme Leader — We Will Export As Much Oil As We Want
Iran Daily, April 27: Clerics — No Problem, We Don’t Depend on Oil Income

But long queues formed at Iranian petrol stations this week amid report of imminent gasoline rationing. And Zanganeh’s concern was apparent even as he maintained that Saudi Arabia and its allies could not provide sufficient oil to cover the Iranian downturn, leading to a spike in global prices.

However, oil prices have remained steady at just over $70 per barrel, about 20% higher than the level before the US imposed its comprehensive sanctions.

Iran’s current export level is about 1.1 million barrels per day, down from 2.5 million bpd in April 2018.