Saudi Arabia has ‘no intention’ of 1973 oil embargo replay

Brent oil holds near $80 as Saudi Arabia plans output increase

Brent oil holds near $80 as Saudi Arabia plans output increase

Saudi Arabia has no intention of using its oil wealth as a political tool in the controversy over the killing of journalist Jamal Khashoggi. Russian Federation has also been angered by President Donald Trump's threat to pull out of a bilateral agreement to limit nuclear missile deployment.

OPEC itself estimates demand for its crude will fall to an average of 31.8 million bpd next year, from an average 32.8 million bpd this year. Over the weekend, the United States increased pressure on Riyadh with talk of possible sanctions.

In an effort to maintain stable supplies to the crude market, Al-Falih said he hopes the Organization of Petroleum Exporting Countries and its non-OPEC oil partners will sign an "open-ended" agreement in December.

In other news, USA drillers added four oil rigs in the week to October 19, bringing the total count to 873, Baker Hughes energy services firm said on Friday, raising the rig count to the highest level since March 2015.

Mr Falih said: "My role as the energy minister is to implement my government's constructive and responsible role and stabilising the world's energy markets accordingly, contributing to global economic development".

Saudi Arabia, the world's biggest oil exporter, has boosted production to 10.7 million barrels a day and is nearing an all-time high.

In addition to its crude investments, Saudi Arabia intends to partner in liquefied natural gas projects overseas and start trading LNG in the future.

The kingdom now holds the biggest spare capacity of around two million barrels which can be utilised when required.

"Investing in the capacity and producing the capacity will continue to be done", Falih said, despite complaining about the high cost of raising and sustaining such capacity.

The Saudi minister expected demand for oil, which now stands at around 100 million bpd, to rise to 120 million bpd over the next three decades. A lower price will help.

Most companies and countries are...

"Tariff concerns, renewed weakening in Chinese equities, emerging market worries and the ongoing investigations of the Saudi participation in the Khashoggi murder are combining to force major liquidation out of the equity space that is easily flowing into the oil complex", said Jim Ritterbusch, president of Ritterbusch and Associates in a note.

Additionally, U.S. Treasury Secretary Steve Mnuchin, visiting Israel this week, said on Sunday that it will be hard for countries to receive waivers on Iran oil sanctions.

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