RIYADH: Saudi Arabia will not rush to boost oil supply to make up for a loss of Iranian supplies due to US sanctions, Energy Minister Khalid Al-Falih said on Tuesday.
Riyadh will adhere to a global agreement on oil production, which could be extended to the end of 2019, the minister said.
The US said last week it would not renew exemptions from sanctions against Iran granted last year to eight top buyers of Iranian oil, and President Donald Trump said he expected other OPEC producers including Saudi Arabia to keep prices low by compensating for any supply shortfall.
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Al-Falih said Saudi Arabia was ready to meet consumer demand after the Iran oil waivers expire in early May, but will not voluntarily exceed output levels set by the global oil reduction deal.
“I confirm our commitment to meet all these requests. But at the same time, we will do this remaining part of the OPEC+ deal, we will stick to it. We do not need to voluntarily exceed the limits set,” he said.
The oil producers meet on June 25-26 to decide whether to extend the pact or adjust supply targets. “It may remain the same, or could change up or down, I don’t know,” Al-Falih said.
“The only indicator I have is consumers’ demand for Saudi oil … the demand is healthy, there is nothing to worry about. There is no shortage on the market.”
