Saudi Energy Minister: Cant cover Iran's oil production

Adjust Comment Print

"Saudi Arabia's energy minister has dealt a fresh heap of bearish fodder onto the energy complex", quipped PVM Oil analyst Stephen Brennock.

Saudi Oil Minister Khaled al-Faleh told the TASS news agency that "there is no intention" of repeating the events of 1973.

Most companies and countries are...

"This incident will pass".

"Saudi and Russian oil production is now close to its highest historical level, and the two countries have no additional capacity to produce more and replace Iran's oil", he added.

Speaking at an investment conference in Riyadh, Falih also said OPEC and non-OPEC producers are expected to sign in December an "open-ended" agreement to continue cooperation in the energy markets.

"The market's knowledge of this disability has led to an increase in oil prices, with the West Texas Intermediate (WTI) and Brent North Sea average rising from $67 and $77 in May to $74 and $84 per barrel respectively in October", he said.

In a column published last week, Saudi-owned Al Arabiya channel's General Manager Turki Aldakhil warned that imposing sanctions on Riyadh could spark global economic disaster as oil could jump to $200 per barrel.

Real Madrid's crisis not my business - Ronaldo
Los Blancos are now lying seventh in La Liga after winning just four matches in nine games, losing three and drawing two. If you get rid of the coach you have to get rid of all of us.

US Treasury Secretary Steven Mnuchin on Sunday dismissed concerns that oil prices could rise, saying the market had already factored in the loss of Iranian oil. "So we have to use oil reserves".

Concerns about the health of the global economy, leading to the equities selloff, are seeping into the oil market.

"Saudi Arabia has been coherent in its policy. That policy has been consistent for many years", Falih said.

Looking at the current short-term timetable, the US sanctions against Iran are set to start on November 4. There has been concern that just as markets tighten on the back of the United States sanctions against Iran, Saudi Arabia could cut crude supply in retaliation for potential sanctions against it over the Khashoggi killing.

"We have sanctions on Iran, and nobody has a clue what Iranians export will be. Secondly, there are potential declines in different countries like Libya, Nigeria, Mexico and Venezuela", he said.

US light crude dropped $3.03, or 4.4 percent, to $66.33 a barrel, after earlier hitting a two-month low at $65.74. If U.S. crude drops below US$65, a psychologically important figure, that could trigger further technical selling, traders said.

Falih said Saudi Arabia would soon raise output to 11 million barrels per day (bpd) from the current 10.7 million.