Indications are growing that show the US cannot rely on Saudi Arabia for too long to make up for the missing Iranian oil supplies once American sanctions are re-imposed against the country.
Doubts if KSA can make up for lost Iranian barrels
10 Jul 2018 - 8:06
Indications are growing that show the US cannot rely on Saudi Arabia for too long to make up for the missing Iranian oil supplies once American sanctions are re-imposed against the country.
Reuters in a report quoted estimates by the International Energy Agency (IEA) as showing that Saudi Arabia would have to pump an extra volume of at least 1 million barrels per day (bpd).
The report added that the kingdom had sufficient spare capacity to fill the gap created as a lack of supplies from Iran.
However, it warned that this would leave the global market with less than 1 million bpd of capacity left to meet all other contingencies.
“In practice, some analysts think the market could be much tighter, with sanctions essentially using up all the spare capacity worldwide,” Reuters wrote.
It further emphasized that there were serious doubts about Saudi Arabia’s ability to keep its oil production beyond the current levels.
Story Code: 342029