Saudi Arabia signals longer-term oil pact with Russian Federation

by Ben Pena October 24, 2018, 1:45
Saudi Arabia signals longer-term oil pact with Russian Federation

Oil prices fell almost 3 percent to more than one-month lows on Tuesday after Saudi Arabia said it could supply more crude quickly if needed, easing concerns ahead of us sanctions on Iran and as USA equity markets sold off.

The kingdom, which produces more than a tenth of global supplies, had vowed on Monday not to withhold its output as a political weapon amid the worldwide backlash over the murder of journalist Jamal Khashoggi.

Looking at the current short-term timetable, the USA sanctions against Iran are set to start on November 4.

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

Oil traded at its lowest in more than a month after Saudi Arabia reiterated plans to raise output and as tumbling equities weakened sentiment.

Peter Kiernan, lead energy analyst at the Economist Intelligence Unit in Singapore, said a Saudi cutback would be self-defeating as "Saudi Arabia would. risk losing market share to other exporters while losing its reputation as a stable actor in the market".

The pledge comes despite Saudi Arabia's previous threats to retaliate to any sanctions with "greater action".

Saudi Arabia will separate its oil policy from politics, the country's oil minister Khalid al-Falih said.

Mnuchin defends upcoming trip to Saudi Arabia in wake of Khashoggi killing
The former high-level official who spoke with The Times said "there is no question" USA intelligence "knows what happened". The kingdom also said that 18 suspects were in custody and that intelligence officials had been fired.

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.

The United States intends to re-impose sanctions on Iran's oil sector in November after unilaterally withdrawing from the Iran nuclear deal in May.

Oil prices spiked on the move, as they did later in 1979 because of the Iranian revolution.

"If oil prices were to rise too much, that would slow the global economy and set off a global recession. We work to stabilise global markets and to facilitate global economic growth", he added.

"I cannot give you a guarantee, because I cannot predict what will happen to other suppliers", Falih said, when asked whether the world can avoid oil hitting $100 per barrel again. "So we have to use oil reserves".

J.P. Morgan said it raised its 2019 Brent price forecast by a whopping $20.50 per barrel to $83.50 saying this "bullish argument is strongly driven by tighter supply due to Iranian sanctions and declining spare capacity".

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. The US is expected to become the largest oil producer in the world next year, according to the International Energy Agency.

Recommended News


TOP News

Beware of the message that will crash your PlayStation 4
PlayStation 4 owners around the world have been struck by a messaging bug, that makes the entire console crash, reports Kotaku . Another suggestion involves running a factory reset on your console, though you may want to look at that as a last resort.

Hostage situation underway at Cologne train station in Germany
Ambulances and heavily-armed police were lined up behind the train station, the daily Koelner Stadt-Anzeiger reported. The area in and around the station - a major transport hub - has been cordoned off.

Chili Peppers singer Anthony Kiedis in strife over brawl
He then re-inserted himself into the situation, throwing a wild punch that could have done serious damage had it connected. I think I'm the one that caused action and I'm going to take full responsibility for every action that I did.

Major League Baseball reviewed report of Astros possibly cheating
We'll see if the Red Sox have any more epic moments in store. "And I mean you're just hyper aware of it". There was an Major League Baseball investigation, but the resolution is unclear.

CDC Investigates Cases Of Rare Neurological 'Mystery Illness' In Kids
From August 2014 through September 2018, the CDC received information on a total of 386 confirmed cases of AFM across the country. About 120 confirmed cases were reported in 2014. "As a parent myself, I understand what it is like to be scared for your child".

'Extremely dangerous' Hurricane Willa barrelling towards Mexico
Hurricane Willa, churning off central Mexico's Pacific coast, strengthened on Sunday night to a unsafe Category 4 storm, the U.S. Tourist resorts on Mexico's Pacific coast are bracing for 160mph winds as Hurricane Willa barrels towards them.

Massachusetts Powerball player wins $1 million
The Mega Millions jackpot for Friday's drawing stands at $900 million - that's the second largest lottery jackpot in US history. Since Mega Millions modified the formula, players now pick five numbers from 1 to 70 and a Mega number of 1 to 25.

Diego Maradona slams Lionel Messi in freaky rant
However, Messi's cousin, Maxi Biancucchi have had enough of Maradona's jibe and made a decision to respond to his latest comments. You say to Messi to "throw yourself in head first" but he prefers to play video games.

Saudi Arabia rejects 'threats' after Trump comments on missing journalist
Describing the disappearance as a "terrible thing", Trump said the United States would find out what happened to Khashoggi . President Trump has said "we would be punishing ourselves" by canceling arm sales.

Trump Calls Stormy Daniels 'Horseface' After She Loses Lawsuit
"He tweeted , in full, "'Federal Judge throws out Stormy Danials [sic] lawsuit versus Trump. The tweet was deleted shortly after it was posted , according to The Contemptor .