Interactive Diplomacy Guarantees Stability
One of the major concerns of oil producers and consumers is market stability. Supply, demand and price constitute the main three pillars of oil market and are determining factors of balance. The three factors are organically involved in oil market stability.
For oil producers, market stability is sufficient demand at reasonable prices that would let them make long-term planning for implementing industrial and social development plans.
For oil consumers, market stability means secure supply at suitable price, based on which they would make planning for industrial and development growth. Furthermore, they expect a stable market to keep factories running while easily meeting social demand for fuel and energy.
Under normal conditions, the market automatically regulates reasonable prices for producers and supply security for consumers based on their mutual needs and it can keep functioning in full stability.
Any social and political tensions in the major production or consumption centers may disturb the balance in the market and lead to instability. The oil market instability in recent years emanated from the US government’s tension-creating and profiteering meddling in the Middle East is a case in point. The latest in date is the US’s unlawful and unilateral imposition of oil sanctions on Iran.
In the run-up to the November re-imposition of US sanctions targeting Iran’s petroleum sector, American officials from President Donald Trump to Congressmen were ranting about the impact of sanctions in a bid to threaten the buyers of Iran’s oil. Nonetheless, this trend slowed down after the US had to grant sanctions waivers to a number of Iran’s oil customers.
This issue was followed by the US failure to prevent an agreement between OPEC and non-OPEC partners for oil production cut from which Iran was exempted. That proved that Iran, which holds the largest hydrocarbon reserves in the world, could not be eliminated from the market and that oil producers will not bow to the US bullying and President Trump’s illogical decisions.
Iran’s oil and gas diplomacy is crystal clear, reasonable and based on the realities of oil market; stability and security for both producers and consumers and guaranteeing development planning with a view to future production stability.
Another pillar of such diplomacy is expanding global interaction and cooperation in favor of global serenity and welfare – something which is apparently incomprehensible for some US politicians.