Saudi Arabia in ‘crisis’ following Khashoggi’s killing, says minister

Saudi Arabia in ‘crisis’ following Khashoggi’s killing, says minister

Saudi Arabia in ‘crisis’ following Khashoggi’s killing, says minister

Earlier this month, Saudi Crown Prince Muhammad bin Salman said the kingdom was fulfilling promises to the United States to make up a shortfall in world oil supplies resulting from the loss of Iranian production under USA sanctions.

The latest API crude oil inventory report showed a sizeable build of 9.9mln barrels above the expectations of 3.7mln barrels, which in turn increases the risk that U.S. crude stocks may have risen for a 5th consecutive week. Brent crude futures have now followed WTI following yesterday's plunge which sees the Brent curve now in contango of -$0.03.

Brent for December settlement fell US$3.13 to US$76.70 a barrel on the London-based ICE Futures Europe exchange. The stock market fall, however, may well continue in the coming days as investors heed warnings from various economic research authorities about a slowdown in global economic growth.

Zanganeh noted that higher oil prices would strongly affect the global economy.

Iranian oil minister says sanctions won't stop them from exporting oil.

In addition, the Saudi stock market has continued to incur "severe" losses for the second week in a raw. Saudi Energy Minister Khalid Al-Falih said OPEC and its allies are in "produce as much as you can mode" to meet demand and replace any looming shortages due to Iranian sanctions.

Several US lawmakers have suggested imposing sanctions on Saudi Arabia over the killing of Saudi journalist Jamal Khashoggi, while the kingdom, the world's largest oil exporter, pledged to retaliate to any sanctions with "bigger measures".

There are limits to the kingdom's ability to respond, Al-Falih said. In China, Iran's biggest oil buyer, the Bank of Kunlun is set to stop handling payments from the Islamic Republic next month, appearing to bow to US pressure.

"Saudi Arabia has been coherent in its policy".

The minister said Saudi Arabia had in fact used its inventories to release about 500,000 barrels per day (bpd) of more oil to the market between May and September.

Iran's Oil Minister Bijan Namdar Zanganeh said oil exports remain "unstoppable" and the market will be in "turmoil" as long as the US imposes sanctions on the Persian Gulf nation's energy industry, Tasnim news agency reported. The 13 nations who've been members of the group throughout the period pumped 32.4 million barrels a day last month, about 740,000 barrels a day less than the level in December 2016, according to data compiled by Bloomberg.

US crude inventories have risen by more than 22 million barrels over the last four weeks, the biggest increase since 2015, when the oil market was heavily oversupplied.

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