Saudi Arabia ready to boost oil output

Saudi Arabia ready to boost oil output

Saudi Arabia ready to boost oil output

But those moves may be tempered by an equal desire by the U.S. and other country for stable oil prices.

Without naming Saudi Arabia, Zangeneh wrote "any increase" in production by any member state "beyond commitments stipulated in OPEC's decisions. would constitute (a) breach of the agreement".

Falih spoke with Russian Energy Minister Alexander Novak on Monday and discussed the need to modify the current monitoring process accordingly and agreed to task a joint OPEC and non-OPEC committee known as the JTC with developing and recommending a suitable process to be considered by the ministerial JMMC panel.

Saudi Arabia has been pumping around 10 million bpd in recent months and sources close to its oil policy have said it could raise output to 11 million bpd.

Saudi Arabia doesn't seem to be in a rush to fulfill Trump's request for an extra 2 million barrels per day.

"We are working to minimize disruptions to the global market, but we are confident there is sufficient global spare oil capacity", Hook said.

"Don't forget the one negative to the Iran deal is that you lose a lot of oil, and they got to make up for it".

Earlier in the day, Iranian President Hassan Rouhani lashed out at American officials for threatening to stop Iran's oil exports, saying they would never be able to carry out such a threat.

The US government says a move to reimpose sanctions on Iran remains on track.

"Prices too high! He has agreed!", Trump added.

However, with Saudi Arabia, leader of the OPEC and non-OPEC coalition agreeing to tighten supply breaking the agreement, there could be an avalanche from other countries like Russian Federation and Iran and Iraq already angling to increase its production.

After reducing production by more than 1.8 million barrels daily since January previous year to drain a global glut, the producers decided in Vienna on June 23 to reverse course.

At their meeting in Vienna last month, OPEC countries and key ally Russian Federation said they will raise production by a million barrels per day, but analysts are concerned it may not be enough for oil prices to spiral out of control, at least until new USA shale production comes on stream.

"Investors should keep in mind that United States shale production remains robust while global trade tensions present a threat for global growth, and this may translate to less demand for commodities".

"OPEC will, from July 1, strive to adhere to the overall conformity levels for the remaining duration of the Declaration of Cooperation", he said in a statement cited by the news agency.

In the same context, the cabinet praised the statement issued after the meeting held in Makkah on the economic crisis in Jordan, called for by King Salman. The UAE, Kuwait and Saudi Arabia agreed an aid package for Jordan of $2.5 billion.

United States light crude was down 40 cents at $73.75.

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