Riyadh says ready to balance market with surplus oil
Saudi Arabia says it is ready to use its surplus two million barrels of oil production capacity to even out the global market.
Publish date : Wednesday 4 July 2018 12:07
"The kingdom is prepared to utilize its spare production capacity when necessary to deal with any future changes in the levels of supply and demand," said a statement released by the Saudi cabinet after meeting chaired by Saudi King Salman bin Abdulaziz Al Saud.
The statement noted that Riyadh will coordinate it future measures with other oil producers.
The announcement comes several days after S President Donald Trump claimed that the monarchy has agreed to raising the oil output to take on Iran and Venezuela.
Trump claimed in a tweet that Saudi King Salman bin Abdulaziz Al Saud had agreed to his call to boost production by "maybe up to 2,000,000 barrels."
The development came days after the oil-rich Persian Gulf state, which is the world's largest oil exporter, agreed to substantially raise production. The leading OPEC member announced plans to pump a record-high 11 million barrels of oil per day in July, according to press reports.
Saudi Arabia currently produces about 10 million barrels of oil per day. Trump’s tweet, however, mentioned no time frame for the additional 2 million barrels – whether it meant per day or per month.
This is while world oil prices have climbed higher as the Trump administration has pressured US allies to end all purchases of oil from Iran. Prices have also increased due to the persisting US-backed troubles in Venezuela, as well as with the unrest in Libya over control of that country’s oil infrastructure.
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.