gpolit.com
gpolit.com May 24, 2018


OPEC Source: Saudis Can Boost Oil Output After US Quits Iran Deal

10 May 2018, 12:22 | Kenneth Drake

OPEC Source: Saudis Can Boost Oil Output After US Quits Iran Deal

OPEC's Barkindo Vows to Maintain Crude Market Stability, but Saudis Worry About Supply Shortage

In an interview with Tasnim, ranking commander of Yemen's Army General Yahya al-Houthi said if Saudi Arabia continues to kill people of Yemen, Saudi vessels and sites at the Bab el-Mandeb Strait will become military targets of Yemen's missiles.

A loss of 500,000 bpd of Iranian crude oil supply would push up oil prices by around $6.20 a barrel, according to Goldman Sachs.

President donaldtrump's withdrawal against the Iran nuclear deal is probably going to exacerbate tensions between two of earth's most important oil manufacturers at next month's OPEC meeting, one analyst advised CNBC Wednesday.

Except for Saudi Arabia and Israel, the entire worldwide community reacted with anger to Trump's decision to abandon the deal, which has been hailed as a victory for global diplomacy and a pillar of regional stability.

US shale producers could also increase their output but it would take time and their light crude is not a good substitute for heavier Iranian oil.

Retired US Army Major and historian Todd Pierce told Sputnik that Trump's announcement was a triumph for the leaders of Israel and Saudi Arabia, both of whom want the United States to confront Iran.

In effect, the United States agreed to implement tough sanctions, and Saudi Arabia agreed to limit the impact on oil prices. By then, hopefully the direction of Iranian actions on its nuclear program and any U.S responses will be clearer and allow Washington to tailor the Saudi agreement accordingly.

Iran, itself a victim of weapons of mass destruction, says it has had no nuclear weapons program and is not in pursuit of such arms.

The result has been a sharp increase in prices, which has been broadly welcomed by OPEC members, especially Saudi Arabia, which needs the revenues to pay for its ambitious transformation programme.

OPEC up coming matches to examine output policy in Vienna.

Saudi Arabian Crown Prince Mohammed bin Salman told CBS News in March, "Saudi Arabia does not want to acquire any nuclear bomb, but without a doubt, if Iran developed a nuclear bomb, we will follow suit as soon as possible".

July ICE Brent futures settled Wednesday at $77.21/b, up $2.36 on the day, while the June NYMEX contract rose $2.08 to $71.14/b.

"Every couple of days, we have missiles coming from Yemen and we see evidence that they are made by Iran ..." The least likely outcome is that Asian countries co-operate fully with the United States in its renewed conflict with Iran.

"The Omani, Qatari, and Kuwaiti governments have all sought to maintain pragmatic relations - economic more than political - with Iran", said Kristian Coates Ulrichsen from the Texas-based Rice University's Baker Institute.



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