OPEC: Iran embargo leads to higher oil

“So please don’t do it…”

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Any decision by Iran to cut oil exports to the European Union will affect the price of oil and hurt the region’s economy, OPEC Secretary General Abdalla Salem El-Badri told CNBC on Monday.

Iran’s parliament is to debate a “double-urgency bill” which would halt all oil exports to the EU in response to sanctions by the bloc, which plans to ban imports of oil from the Middle Eastern country in July.

“Iran are exporting 400-500,000 barrels a day to the EU,” El-Badri said. “Of course this quantity is going to affect the EU…you don’t want to add more problems to the EU. And for the Iranians also, to cut 400-500,000 barrels a day from their exports, it will affect their living.”

El-Bardi did not want to speculate on whether Iran will go ahead with the move to ban exports to the EU, which would disturb a five-month transitional period to allow the countries to find alternative suppliers.

“Today…the market is stable, there is no shortage of oil anywhere in the world,” he said. “However, to take out 400-500,000 barrels a day in a matter of days, this will affect the price. Of course the price will go up. I don’t know how much.”

He reiterated his statement that $100 per barrel was a sustainable price for oil for this year.

“One hundred dollars is suitable for producers and consumers,” El-Badri said. “For us, we can invest, we can have enough income for our member countries and also the consumers can survive, can have their economy flourish with $100. I think anything above $110 is a problem.”