Saudi Arabia rejects Trump request to hike oil output

Lloyd Doyle
September 24, 2018

Oil prices could rise towards US$100 (RM413) per barrel by 2019 as U.S. sanctions against Iran tighten markets, commodity merchants Trafigura and Mercuria said on Monday at the annual Asia Pacific Petroleum Conference (Appec) in Singapore.

Zangeneh did not attend the Joint OPEC/Non-OPEC Ministerial Monitoring Committee (JMMC) held in Algeria on Sunday.

Before the Sunday meeting, Zangeneh had warned fellow OPEC members against any effort to appease the USA, saying Tehran would veto any decision by the Organization of Petroleum Exporting Countries that would harm Iran's national interests.

Higher gasoline prices for U.S. consumers could create a political headache for Republican Trump before mid-term congressional elections in November.

In its annual World Oil Outlook, the Organisation of Petroleum Exporting Countries forecast world supply of all hydrocarbons (primarily oil and liquified natural gas) would rise from a current 98.4 million barrels per day (mbd) to 104.5 million by 2023, and 111.9 million by 2040.

"Decisions can only be made at OPEC meetings in the presence of all OPEC members and by consensus of members", he noted.

"It's going to be significantly less than it was, and probably lower than most people expected when the sanctions were announced - hence the higher prices", Luckock said at the APPEC event.

"There is no spare capacity. They can not deliver the extra capacity that they claim".

The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) is being convened in Algiers with the oil and energy minister of OPEC and non-OPEC countries including Russian Federation.

Under pressure from Trump, OPEC and allies agreed in June to boost production, after months of undersupply by OPEC countries including Venezuela and Angola and the prospect of the Iran sanctions.

"The biggest issue is not with the producing countries, it's with the refiners, it's with the demand".

"If there is a fall not only from Iran, but anybody else, it is the responsibility of OPEC and non-OPEC to balance the market", Hossein Kazempour Ardebili, who represents Iran on OPEC's board of governors, told reporters.

"Extra production beyond OPEC quotas requires permission of the conference", he said.

Last week, Opec secretary-general Mohammad Barkindo said in Fujairah that oil producers aimed to agree on a framework for long-term cooperation by December when they meet in Vienna.

Other reports by Iphone Fresh

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