• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 3 hours Shale Oil will it self destruct?
  • 1 hour U.S. Administration Moves To End Asylum Protections For Central Americans
  • 31 mins White House insider who predicted Iran False Flag, David Goldberg found dead in his New York apartment
  • 7 hours NYT: Mass Immigration Roundups in U.S. to Start Sunday
  • 1 hour U.S.- Taiwan: China Says Will Freeze Out U.S. Companies That Sell Arms To Taiwan
  • 1 hour South Korea imports No Oil From Iran in June - First-Half Imports Fall 37%
  • 2 hours Starlink Internet Courtesy of Tesla
  • 1 day Panama revoked registrations of tankers flying under their flag that have not complied with sanctions. Most are Iranian tankers. Vessel seized in Gibraltar, Grace I, flying under Panamanian Flag. Registration revoked in May. England seizing justified
  • 24 hours Oil Price Could Fall To $30 If Global Deal Not Extended
  • 20 hours Rising air pollution and green house effect
  • 1 day Is This The End of BBQ?
  • 3 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 12 hours Germany exits coal: A model for Asia?
Middle East Tanker Insurance Rates Soar 10-Fold

Middle East Tanker Insurance Rates Soar 10-Fold

Insurance rates for tankers going…

The U.S. Sought Saudi Oil Support Before Iran Deal Withdrawal

Trump

A day before U.S. President Donald Trump pulled the United States out of the Iran nuclear deal, a senior official of the Trump Administration phoned Saudi Arabia to ask it to help keep oil prices stable should the U.S. decision on Iran disrupt oil supply, Reuters reported on Thursday, quoting three sources familiar with the issue.

A senior U.S. official had called Saudi Crown Prince Mohammed bin Salman before President Trump announced his decision on the Iran nuclear deal, to make sure that the United States could count on OPEC’s largest exporter and de facto leader Saudi Arabia to keep prices stable, because Washington was concerned that the sanctions could drive oil prices up.

A senior Saudi official did not confirm the call had taken place, but told Reuters:

“We were made aware of the decision on the JCPOA [Joint Comprehensive Plan of Action] before the announcement...We always have conversations with the U.S. about the stability of the oil market.”

Earlier this week, Bloomberg reported that the United States had quietly asked Saudi Arabia and several other OPEC nations to raise oil production by some 1 million bpd.

Before the U.S. withdrawal from the Iran nuclear deal, the Saudi position was that the cuts would remain in place until the end of this year, as planned, even if OPEC were to overtighten the market.

Related: Corn States Win In Fight Against Refiners

But after the U.S. walkout of the Iran deal, the Saudis started hinting at raising oil production to “address market and consumer anxiety.”

Reports started circulating that Saudi Arabia and Russia have discussed lifting the oil production of the OPEC/NOPEC nations part of the deal by as much as 1 million bpd.

According to OPEC sources who spoke to Reuters, the change in the Saudi thinking and tactics has “upset” Saudi Arabia’s close Arab Gulf allies because they had not been consulted prior to Saudi Arabia’s comments on a possible increase in production.

These developments are setting the stage for a tense meeting later this month at which OPEC and allies are expected to discuss reversing some of the cuts to offset potential supply disruptions.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play