Saudi cabinet says ready to use spare oil capacity as needed

Saudi cabinet says ready to use spare oil capacity as needed

Saudi cabinet says ready to use spare oil capacity as needed

He questioned whether Trump's words would do anything to reverse the effects on the market of declining Iranian oil production. "It is a real blow to OPEC, in part because of the impression the Saudis are following USA bidding, but mostly because Saudi Arabia and Russian Federation had stitched up a deal to raise production anyway even before the meeting".

Abu Dhabi said it's ready to increase oil output in line with guidance set by OPEC and allied producers, echoing comments by Saudi Arabia that it will boost supply to meet demand.

A little more than an hour after Trump's tweet, the state-run Saudi Press Agency reported on the call, but offered few details.

USA production C-OUT-T-EIA has soared 30 percent in the past two years, to 10.9 million bpd, meaning the world's three biggest oil producers now churn out nearly 11 million bpd each, meeting a third of global oil demand.

Iran will apply various methods to thwart the USA sanctions, Jahangiri said during a meeting of the resistance economy headquarters.

Oil has been leaning to the bullish side this week after dipping from the weekend's headlines that Trump has encouraged Saudi Arabia to increase their production to make up for market shortfalls from Iran and Venezuela.

The 9.1 trillion 2018 budget was predicated on a benchmark price of $51 per barrel and production of 2.3 million barrels per day.

Last month, Opec, the cartel of oil-producing states, voted to increase production by up to a million barrels a day in a bid to keep spiralling oil prices steady. Keeping oil price around $70 per barrel serves both economic and political objective.

Despite Monday's drop in oil prices, many analysts see oil prices likely to resume their upward climb, given a range of geopolitical factors.

Saudi Arabia, which has been pumping about 10 million barrels per day, holds the largest spare capacity in the world and is the only country that can add substantial supply to the market. "We are working to minimize disruptions to the global market, but we are confident there is sufficient global spare oil capacity".

He added that it is "incorrect and unwise" to think that "one day all oil producing countries would export their surplus oil and Iran would be the only country that can not export its oil". That's led to higher prices at gasoline pumps in the it heads toward midterm elections for Congress.

Some major importers of Iranian crude have sent mixed signals on their willingness to abide USA sanctions, particularly as inventories remain low. He said he expects European countries to unveil a package of measures in the coming days created to keep the deal alive.

President Donald Trump has repeatedly expressed concern about oil prices in recent weeks and announced Saturday that King Salman of Saudi Arabia "has agreed" to raise daily oil production by 2 million barrels to ease the price pinch.

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