Saudi Arabia can not replace Iran's oil in market: minister

Saudi Arabia can not replace Iran's oil in market: minister

Saudi Arabia can not replace Iran's oil in market: minister

The Trump administration is pushing on all buyers of Iranian oil to cut imports to zero.

Wednesday's cuts represent about 6.5 percent of the nation's daily output of 11.1 million barrels of crude.

White House spokeswoman Sarah Sanders said National Security Advisor John Bolton, Secretary of State Mike Pompeo and Trump's aide and son-in-law Jared Kushner had all spoken to Prince Mohammed over the past two days over the case.

"What Saudi Arabia had been supplying the market with, were not from [its] spare capacity but from tapping its oil stocks", he pointed out.

Turkey has been granted permission to search the diplomatic post, a very rare move in response to growing pressure from the fellow regional power and Saudi allies across the globe including the UK and Donald Trump's United States.

Saudi Arabia has dismissed allegations it played a role in Khashoggi's disappearance as "baseless", but it has offered no evidence to support its contention he left the consulate unharmed last week and vanished into Istanbul while his fiancée, Hatice Cengiz, waited outside.

Six Cash Dubai partials traded on Monday with Shell snapping up five of them, industry sources said.

Trump has repeatedly taken aim at OPEC for rising energy prices, even after it came to a rare agreement to ease production restrictions in June. But Iran, OPEC's third-largest producer, has repeatedly announced that its oil exports can not be reduced to zero because of high demand levels in the market. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

That strategy may have encouraged member countries to increase production in the past, Croft said, but will likely become less effective as the global oil cushion shrinks.

"Even if Libyan output is on the rise global demand would still exceed global supply, not to mention the fact that Iranian output is expected to fall further".

"With Trump and these tweets, I think there are diminishing returns", she said.

India is Iran's top oil client after China, though several refiners have indicated they will stop taking Iranian barrels because of the sanctions. MRPL replied "no comments" when contacted by email. "Moreover, with oil supplies so tight any further disruption could mean a major spike in oil prices, creating more nonlinear impacts on confidence and growth".

Trade tensions and rising import tariffs are taking a toll on worldwide commerce, while emerging markets struggle with tighter financial conditions and capital outflows, the IMF said.

Iran's economy is expected to shrink by 1.5 percent in 2018 and by another 3.6 percent in 2019, the International Monetary Fund (IMF) said in the October update of its World Economic Outlook, heavily downgrading the Islamic Republic's growth prospects with the return of the USA sanctions.

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