"The current price hike is mainly due to some political tensions injected into the oil market. The role of some manipulations in the supply and demand statistics in this equation is insignificant," said Zangeneh.
June 20, 2018, OPEC Headquarters
While leaving Kempinski Hotel to attend JMMC meeting, Zangeneh said: "I need someone to explain me why we should increase production in a balanced market."
The JMMC meeting was delayed due to a 45-minute meeting of Zangeneh and Russian Minister of Energy Alexander Novak. In the meeting, Zangeneh voiced his opposition to any agreement for oil output hike. The Iranian minister made it clear that no agreement would be reached if there are calls for oil output hike.
Zangeneh walked out of JMMC meeting where Russian and Saudi ministers had expressed their firm determination for a higher oil output.
The JMMC, where Russian, Saudi, Omani and Algerian ministers sit, had approved 1 mb/d oil production hike prior to the 174th OPEC ministerial meeting.
After leaving the meeting angrily, Zangeneh said: "This meeting was ceremonial and was unlikely to lead to any conclusion."
June 21, 2018, OPEC Headquarters
Before the meeting of 174th OPEC Conference, Zangeneh and Falih went into a one-on-one meeting. All eyes were fixed on the door of the room where the 45- minute private meeting of the two ministers was held. After the meeting, Zangeneh, standing alongside Falih and Saudi Crown Prince Salman bin Abdul Aziz, said: "With Mr. Falih, we discussed every issue very frankly."
That meeting might be the reason for OPEC to take output hike off agenda despite US pressure.
The American president called on OPEC twice to boost output in order to push prices down.
OPEC ministers reached agreement much sooner than expected. OPEC reached agreement on member states' full compliance with the November 2016 deal. That was what Iran's delegates had been fighting for.
"Reaffirming OPEC’s continued commitment to stable markets, the mutual interest of producing nations, the efficient, economic, and secure supply to consumers, and a fair return on invested capital, and noting the overall improvement in market conditions and sentiment and the return of confidence and investment to the oil industry;
Recalling the 171st OPEC Conference resolution issued on 30 November 2016 for a production adjustment of 1.2 mb/d;
Accordingly, the Conference hereby decided that countries will strive to adhere to the overall conformity level of OPEC-12, down to 100%, as of 1 July 2018 for the remaining duration of the above mentioned resolution and for the JMMC to monitor and report back to the President of the Conference." Prior to leaving OPEC Secretariat, Zangeneh said: "The decision made by OPEC today was what I insisted upon on the very first day, i.e. conforming OPEC's previous accord."
June 22, 2018, Kempinski Hotel
President Trump once again called on the Organization of Petroleum Exporting Countries to increase output.
"Hope OPEC will increase output substantially. Need to keep prices down!" he wrote on Twitter.
Zangeneh responded to Trump, saying: "He does not know that except for a few, nobody in OPEC is happy with him."
"Of Course, I don't believe that Trump does not favor high oil prices. He wants to pretend that he is opposed to high oil prices because I've heard that gasoline price at $4 a gallon is a red line in the US," said Zangeneh. "He wants to say it is not the result of his policy and blames OPEC for it. That is while the price hike is due to Trump's behavior. OPEC cannot do more."
"Trump is making two mistakes; first, he imagines that he will soon see government change in Iran. That is a very big mistake. His other mistake is that he thinks there is major spare capacity for production in the world. This is also a mistake," said Zangeneh.
Asked about Russia's stance in favor of oil output hike, the Iranian minister said: "We have to understand reality. Never forget [former British Prime Minister Winston] Churchill's famous phrase which he said when asked how he had made alliance with his strategic enemy Russia in World War II; 'A nation has no permanent enemies and no permanent friends, only permanent interests'.”
"I've always said that no country is either our brother or our enemy forever," he said. "We should regulate our ties with other nations based on our own interests."
June 23, 2018, Vienna Airport
Zangeneh left Kempinski Hotel for Vienna airport after an intensive meeting. He managed to bring to an end a complicated oil game initiated by Trump, Russia and Saudi Arabia.
Now Iran's oil sector is facing the obstacle of US sanctions.