Saudi Energy Minister: Cant cover Iran's oil production

Saudi Energy Minister: Cant cover Iran's oil production

Saudi Energy Minister: Cant cover Iran's oil production

Mr Falih added that Saudi Arabia will raise oil output to 11 million barrels per day from 10.7 million.

However, U.S. crude oil production has climbed by nearly a third since mid-2016, and the rising output could help to offset the loss of exports from Iran.

Oil fell towards $75 a barrel to its lowest since late August on Wednesday, pressured by concern that demand is weakening and supply ample even as US sanctions loom on oil exporter Iran. "We work to stabilize global markets and to facilitate global economic growth", he added.

"Oil prices fell Saudi Arabia released assurances it could supply more to the global market", Australia's Rivkin Securities said.

"We have sanctions on Iran, and nobody has a clue what Iranians' exports will be".

A sell-off in equities due to concern about the economic outlook also weighed on crude on Tuesday.

Oil prices fell more than 2.5 per cent today after Saudi Arabia indicated it was ready to pump more crude to meet any shortfall resulting from America's sanctions on Iran.

Climate forecasters say ME likely to have above-average temps this winter
Portions of the Northern Rockies and the Northern Plains are also likely to experience drier-than-average conditions. Even so, the NOAA forecast indicates "equal chances" of above-, normal or below-normal temperatures in this zone.

Saudi Energy Minister Khalid al-Falih told a conference in Riyadh yesterday the oil market was in a "good place" and he hoped oil producers would sign a deal in December to extend co-operation to monitor and stabilise the market.

"We will meet any demand that materializes", Al-Falih said at the country's signature investment conference, which is being overshadowed by an global outcry over the killing of Saudi government critic Jamal Khashoggi.

New US sanctions, targeting Iran's oil sector and banking, are to go into effect on November 4.

The threat of Western sanctions against Saudi Arabia over the killing of journalist Jamal Khashoggi could tilt the kingdom eastward, an analyst says.

"The full impact of the US-China trade war will hit markets in 2019 and could act as a considerable drag on oil demand next year, raising the possibility of the market returning to surplus", said Emirates NBD bank in a note. Falih said on Monday there was no intention of doing that.

"Saudi Arabia has been coherent in its policy". The deal "will allow us to intervene to rebalance the market in any appropriate time from January onward", he said.

In other news, the American Petroleum Institute (API) reported a huge build of 9.88 million barrels of United States crude oil inventories for the week-ending October 19. The 13 nations who've been members of the group throughout the period pumped 32.4 million barrels a day last month, about 740,000 barrels a day less than the level in December 2016, according to data compiled by Bloomberg.

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