Saudis promise to offset Iranian petroleum cuts

They don’t say it hear, but that’s what this is all about. The Saudis didn’t like the Iran nuke treaty. They are delighted to see Trump withdraw from it. And they are willing to increase production if necessary, should Iranian production drop.

Saudi Arabia announced on Friday that it was holding consultations with other oil producers in and outside OPEC, in a move aimed at securing the world’s supplies are adequate to support economic growth after prices hit $80.

Oil rates touched $80 a barrel for the first time since 2014.

Energy Minister Khalid Al-Falih said in a Twitter post that he had called his counterparts in the United Arab Emirates, the United States and Russia, as well as major oil consumer South Korea, to “coordinate global action to ease global market anxiety”.

Falih also said he had reassured the executive director of the International Energy Agency of “commitment to the stability of oil markets and the global economy” and that he would contact others over the next few days.

On Thursday, Falih called Indian Petroleum Minister Dharmendra Pradhan to assure him that supporting global economic growth was “one of the Kingdom’s key goals”, the Saudi government said in a statement, after India expressed frustration with the recent surge in oil prices.

Oil prices held firm on Friday, with Brent crude trading at around $79.70 per barrel after the international benchmark broke through $80 for the first time since November 2014 the previous day.

The Saudi energy ministry said on Thursday that the Kingdom together with other producers would ensure the availability of adequate supplies to offset any potential shortfalls.

India’s Pradhan had expressed concern about the negative impact of escalating prices on consumers and especially the Indian economy, the world’s third-largest oil consumer.

India is one of the world’s fastest-growing energy consumers and its oil use lags only that of the United States and China.

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