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Iran’s Ability to Influence Oil Market is Limited: US’s Perry

avatar by Reuters and Algemeiner Staff

US Energy Secretary Rick Perry attends a joint news conference with Hungarian Foreign Minister Peter Szijjarto in Budapest, Hungary, November 13, 2018. Photo: REUTERS/Bernadett Szabo.

The rise in new suppliers of oil and gas has reduced the ability of Iran to influence global oil markets, US Energy Secretary Rick Perry said on Monday.

The price of crude jumped on Monday following Iran’s seizure on Friday of a British-flagged oil tanker in the Strait of Hormuz, but had pared initial, steep gains by 1507 GMT.

“I am concerned about it,” Perry told a news conference in Jerusalem, referring to the price rise that followed the ship’s capture. “But we find ourselves in a completely different situation than we were a decade ago.”

“New suppliers should help keep a steady supply of fuel — whether it’s crude, natural gas or other secondary products. I think you will see less displacement of the market when there is an event like we see happening,” he said.

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“The Iranians will have a more difficult time in influencing the market than they would have 10 years ago.”

Perry was in Israel to meet his Israeli counterpart, Yuval Steinitz, and Prime Minister Benjamin Netanyahu on a variety of issues and will head to Egypt later this week for a natural gas forum to discuss international energy cooperation.

Israel is on the verge of becoming an energy exporter once the Leviathan gas field starts production this year off the country’s Mediterranean coast, with Israel due to supply Egypt and Jordan.

Texas-based Noble Energy is one of the developers of the project and a key owner of the nearby Tamar field.

Perry said he believed other US energy firms would start exploring off Israel’s shores.

“Noble is not going to be the last. There are other US and international companies that are looking,” he said, declining to elaborate. “When you start finding oil … it won’t take long to show up and start drilling and being a part of this.”

Last week, Israel received bids from two groups of companies to explore for oil and gas off its coast.

They were British newcomers Cairn Energy, SOCO International, and Israel’s Ratio Oil. The second consortium included repeat bidders Energean and Israel Opportunity. Together they offered to take 12 of the 19 available blocks.

Steinitz said in March that Brazil’s Petrobras was expected to take part in the tender. Reuters reported that Exxon Mobil, in a policy shift, was considering bidding in the auction.

Perry also said that while it was still early, he was not opposed to US involvement in Saudi Arabia’s nuclear program, as long as it was for civil purposes.

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