Saudi Arabia Says To Coordinate With Other Producers To Ensure Adequate Oil Supply

Saudi Arabia said on Monday it would coordinate with other oil producers to ensure an adequate crude supply and a balanced market after the United States said it would end waivers granted to buyers of Iranian oil. “Saudi Arabia is closely monitoring the oil market developments following the recent statement from the U.S. government regarding oil export sanctions on Iran,” Energy Minister Khalid a-Falih said in a statement. “Saudi Arabia will coordinate with fellow oil producers to ensure adequate supplies are available to consumers while ensuring the global oil market does not go out of balance.”

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I'm sure, they will... for an escalation in price

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China just announced that not only they won't stop importing Oil from Iran they will increase it. So, extinguishing fire with gasoline....

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Statement makes sense ... Saudi Arabia has in effect promised the White House it can and will keep prices down in exchange for much tougher sanctions on its regional enemy Iran....

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That means SA is a new pappy of yankees

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8 hours ago, Pavel said:

I'm sure, they will... for an escalation in price

They do weigh the profit margin vs. the volume they can sell. They have many competitors doing the same. They are all in the same boat since America is meeting its own needs and has entered the export markets. Nopec?

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7 hours ago, Dmitry Bedin said:

That means SA is a new pappy of yankees

No, just trading favors. 

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9 hours ago, ThunderBlade said:

Saudi Arabia said on Monday it would coordinate with other oil producers to ensure an adequate crude supply and a balanced market after the United States said it would end waivers granted to buyers of Iranian oil. “Saudi Arabia is closely monitoring the oil market developments following the recent statement from the U.S. government regarding oil export sanctions on Iran,” Energy Minister Khalid a-Falih said in a statement. “Saudi Arabia will coordinate with fellow oil producers to ensure adequate supplies are available to consumers while ensuring the global oil market does not go out of balance.”

I'm guessing that the Saudi Energy Minister presumes that $80+  (or specifically, $91)  Brent oil price means a balanced global oil market.

My own personal opinion is that $70.00 Brent is a balanced global oil market.  A suitable, sustainable balance between most oil producers and most oil consumers.

Similar idea to what the Saudi Energy Minister mentioned, but  probably a different number for the global oil price balance.

A couple of my related comments from yesterday:

 

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On 4/22/2019 at 11:39 AM, Dmitry Bedin said:

That means SA is a new pappy of yankees

Saudi Arabia, as we know it, will be gone in 5 to 8 years. 

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