Saudi says ready to pump more oil to balance market

Ann Santiago
July 5, 2018

To make up for potential shortfalls in supply from Iran sanctions as well as other disruptions including Libya and Venezuela, the Organization of the Petroleum Exporting Countries (OPEC) has agreed with Russian Federation and other oil-producing non-OPEC members to raise output from July.

Iran says it will find ways to export its oil, despite what he does.

Mr Trump's interventions with tweets "unsettle" the market and appear to have pushed prices up, Standard Chartered Plc energy analyst Emily Ashford and head of commodities research Paul Horsnell wrote in a note Tuesday. The White House has said the us will put those sanctions back into place.

Iran had been pushing hard for oil producers to hold output steady as USA sanctions are expected to hit its exports.

OPEC pledged to relax compliance with an agreement that helped balance an oversupplied market, but that might not be enough to address a looming deficit of around 2 million barrels per day.

First Vice President Es'haq Jahangiri said on Monday that Iran is able to counter the looming USA sanctions, noting that those at the White House who think they can halt Iran's oil export are living in "illusion".

"Banking sanctions will also snap back on November 4, and we will be aggressively enforcing these provisions to lock up Iran's assets overseas and deny the Iranian regime access to its hard currency".

An agency report on Tuesday indicated, however, that despite the U.S. push on Saudi Arabia, futures in NY jumped as much as 1.7 per cent.


The move lower is attributable to Saudi Arabia's willingness to increase demand at the request of US President Donald Trump.

"We are working to minimize disruptions to the global market, but we are confident there is sufficient global spare oil capacity", Hook said.

Mr Trump took another swing at his European allies saying they dealt unfairly with the U.S. over trade. "Of course. That's what we're doing, absolutely", he said.

After Trump announced his withdrawal from the Iranian nuclear agreement, Hook said the American diplomatic teams from the State and Treasury are bringing with them a message of cooperation and coordination.

"We're not granting waivers", the official said.

Libya's National Oil Corporation declared "force majeure", or unforeseeable circumstances, as the country's continued struggles with internal conflicts see approximately 850,000 barrels per day after losing control of Zueitina and Hariga ports this week.

The impact on the tanker trade remains unclear as oil buyers could turn to regular sources such as Saudi Arabia for more barrels, or look further afield at long distance sources such as the US.

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