Saudi Arabia set to stabilize oil markets after US increases pressure on Iran

/ Policy & Regulations / Tuesday, 23 April 2019 11:00

Saudi Arabia has pledged its commitment to stabilizing the oil markets following the decision by the United States to end sanction exemptions for Iran’s customers in their latest efforts to heighten the pressure on Tehran.

However, the de-facto leader of OPEC Saudi Arabia allayed fears that the market would be severely disrupted by the latest proposal by the US and reaffirmed its pledge to keep the global oil markets stabilized at all times.

Saudi Arabia’s Energy Minister Khalid Al-Falih said, “The kingdom reaffirms its longstanding policy, which seeks to stabilize the markets at all times. The kingdom will coordinate with other oil producing countries to ensure adequate supplies to consumers.

The White House announced earlier this week that it was removing grant reprieves from unilateral US sanctions on Tehran as part of renewed efforts to bring Iran’s oil exports to zero. Eight countries including China, India and Turkey were all given six-month waivers by the US but that has now been removed.

President Trump has adopted an aggressive approach towards Saudi Arabia’s bitter regional rival and last year decided to tear up a landmark nuclear deal with Iran that had been agreed upon by the Obama administration in 2015.

However, both Saudi Arabia and the United States have repeatedly stressed the need for calm amidst the latest developments and said that it will keep markets stable.

Riyadh will work with both producer and consumer countries to ensure market stability in the interest of both parties and the growth of the world economy," Falih said.

The White House said Saudi Arabia and the United Arab Emirates -- close US allies -- would work to make up the difference in oil to ensure that global markets are not rocked. 

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