Official says S Arabia unable to replace Iran’s oil

Daniel Fowler
October 8, 2018

Yet the market doesn't seem to care. On Wednesday, Brent hit its highest price since late 2014, at $86.74.

The so-called OPEC+ coalition includes other Gulf producers like the United Arab Emirates, as well as countries outside OPEC such as Russian Federation. Still, the muted price reaction - and the analysis of one powerful individual - suggests limits to their influence.

In November, the U.S.is set to introduce the second phase, sanctioning Iranian oil and gas as Trump follows through on his promise to put maximum pressure on the country after the US withdrawal from the 2015 nuclear deal in May. "Donald, if you want to find the culprit for the rise in prices, you need to look in the mirror".

U.S. sanctions will target Iran's crude oil exports from November 4, and Washington has been putting pressure on governments and companies worldwide to cut their imports to zero. Iran is planning to utilize the rupees, imported from India, food grains and medicines to their country.

He also warned that media controlled by "foreign enemies" could be as risky as "chemical weapons", and said he would never allow Iran to "kneel and give in to the USA". "I anticipate that November will be slightly higher", he said, potentially breaking the production record set in November 2016.

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Sources said India and Iran are discussing reverting to rupee trade after November 4. Some buyers have gone above their contracts and requested higher amounts, he said. The United Arab Emirates and Iraq have also pumped more "so Opec+ has been very responsive to meeting demand". The deal was struck as oil prices began to climb towards $80 per barrel.

U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 35 cents to $74.68 a barrel by 1:07 p.m. EDT (1707 GMT). The worldwide benchmark is up 27pc this year.

Despande went on to say what innumerable analysts have already said: that the big question is if Saudi Arabia has the ability to make up for the shortfall, and while he pointed out they might be able to ramp up appropriately in nine months' time, supplying enough oil in the near term is more problematic.

The Saudi prince claimed in the Bloomberg interview that the kingdom could push its capacity beyond 12 million barrels a day with additional investment, and that extra supplies are also available from its allies in the Persian Gulf region.

Mr Pompeo said the practical fallout from the U.S. decision to withdraw remains to be seen.

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