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Saudis pledge to ensure oil supply if Iran exports collapse

Khalid Al-Falih, Saudi Arabia’s Energy Minister/Bloomberg

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Saudi Arabia’s Energy Minster said that the Kingdom is closely monitoring oil-market developments after the US announcement regarding export sanctions on Iran.

Tuesday 23, April 2019

(Bloomberg) --Saudi Arabia’s Energy Minister said that the Kingdom will coordinate with other crude producers to ensure that adequate supplies are available and the market does not go out of balance after the US ended waivers for buyers of Iranian oil.

Khalid Al-Falih, Saudi Arabia’s Energy Minister, said, “In the next few weeks, the Kingdom will be consulting closely with other producing countries and key oil consuming nations to ensure a well-balanced and stable oil market, for the benefits of producers and consumers as well as the stability of the world economy.”

Saudi Arabia and the UAE will ensure an appropriate supply of oil along with the US, as President Donald Trump will not re-issue Iran oil waivers set to expire in May, said Mike Pompeo, the US’s Secretary of State.

The current set of waivers, issued to China, Greece, India as well as Italy, Japan, South Korea, Taiwan and Turkey, are set to expire on 2 May. Saudi Arabia and the UAE can increase their combined production by about 1.5 million barrels a day within a short period.

Iran shipped about 1.1 million barrels a day of crude and condensate in the first two weeks of April.

In a Twitter post, President Trump, said, “Saudi Arabia and others in OPEC will more than make up the oil flow difference in our now full sanctions on Iranian oil.”

Saudi Arabia will assess the impact of the US decision on the oil market before raising output, according to one of the people.

The biggest producer in the organisation of Petroleum Exporting Countries (OPEC) can pump an additional one million barrels a day within a short period. Saudi Arabia produced 9.82 million barrels a day in March, while the UAE can increase output to 3.5 million barrels a day from a current level of 3.05 million.

OPEC+ agreed to limit their production until the end of June to buttress crude prices and avert a glut. They are due to meet next month to assess the market and again in June to decide whether to extend the cuts.

TAGS : OPEC+, US sanctions , Iranian oil, Mike Pompeo, Oil waivers

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