Saudi says ready to pump more oil to balance market

Saudi says ready to pump more oil to balance market

"Instead it reveals the economic interdependence of his Iran policy, his Middle East partnership strategies, and his vulnerability in the domestic economy" Ms Young said.

"We want to defeat America's efforts ... to stop Iran's oil exports", he said.

Iran possesses the second-largest gas reserves on the planet after Russian Federation and the fourth-largest oil supply, while Saudi Arabia is the world's biggest oil exporter. "We are working to minimize disruptions to the global market but we are confident there is sufficient global spare oil capacity".

A survey of analyst expectations from S&P Global Platts revealed expectations of a drain on US crude oil inventories of 4.5 million barrels last week, adding support to the concerns about a market deficit. The official spoke on the condition of anonymity under State Department ground rules.

US officials are pressing allies in Europe, Asia and the Middle East to adhere to the sanctions once they are re-imposed, with the aim of pressuring Iran into negotiating a new agreement.

Turkey has also said it would keep up Iranian crude imports, while China, the largest consumer of Iranian crude oil, has criticised the U.S. for withdrawing from the deal.

U.S. markets were jolted Tuesday morning as Crude Oil made a large downturn after touching $75 a barrel, a price not seen in four years.

Last month President Donald Trump withdrew the United States from the landmark Iran nuclear deal, re-imposing U.S. sanctions that had been suspended in return for curbs on Tehran's nuclear programme.

The White House said Saturday that King Salman had promised President Donald Trump that he would raise oil production if needed. "Prices to high! He has agreed!"

More news: Trump says he'll name high court pick on July 9

Norway-based Rystad Energy expects Iranian production to drop by 700,000 bpd by December 2018.

Some key countries are reliant on Iranian oil imports, including India and Turkey.

Looming U.S. sanctions against Iran further contribute to expected tightness.

He said oil sector contracted by 1.6 per cent a year ago mainly because of the Opec mandate that saw the UAE cut its oil production by 150,000 barrels per day from an average of 3.09mbpd in Q4 2016 to an average of 2.89m in Q4 2017, representing a drop of almost 6.4 per cent.

Craig added that more issues could develop as Washington tightens the sanctions noose on Iran and Venezuela. About 450,000bpd of exports has been lost due to Libyan conflict.

Saudi Arabia agreed on Tuesday to make use of its spare production capacity to deal with changes in the level of supply and demand.

While OPEC leader Saudi Arabia will pick up the slack, Morgan Stanley believes oil markets will be undersupplied by around 600,000 in the second half of 2018.

Mr Trump is not the first US President to attack OPEC.

Hook declined to say if the kingdom can offer that additional supply, but the United States is "working to minimize disruptions to the global market", Hook said.

Related Articles