Trump Says Saudis Must Compensate For Drop In Iran Oil Supply

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The announcement comes after US President Donald Trump said on Saturday that King Salman had agreed to his request to ramp up oil production.

The statement noted that Riyadh will coordinate it future measures with other oil producers. They also stressed on the importance of providing supplies when necessary to "achieve common interests and stimulate the global economic growth".

On Fox, Trump directed blame at the Organization of Petroleum Exporting Countries, of which Saudi Arabia is a member.

"Since Venezuela and Libya failed to produce, OPEC countries made a decision to increase their output by one million barrels to compensate", Sonatrach's CEO noted, adding: "This is why prices stand at the same level".

"Continuation of exporting oil is symbol of victory against the USA sanctions and I hope we would witness this great victory through planning by the Oil Ministry", the vice president explained.

The U.S. government plans to shut Iran's oil exports out of the market from November, demanding that all countries stop buying its oil.

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The Kingdom, which has been pumping around 10 million barrels per day, holds the largest spare capacity in the world and is the only country that can add substantial supply to the market.

On Tuesday, Morgan Stanley raised its Brent forecast to US$85 per barrel, from US$77.5, citing concerns that the United States may succeed in blocking much of Iran's 2.7 million barrels per day.

U.S. markets were jolted Tuesday morning as Crude Oil made a large downturn after touching $75 a barrel, a price not seen in four years.

"If geopolitical risk factors impacting oil start to ease and demand declines on slowing growth, oil may witness heavy losses".

"There are indications that Iranian oil exports have already begun dropping during the first half of June, mostly to Europe". "These sanctions will include targeting Iran's automotive sector, trade in gold, and other key metals", he said. King Abdullah II of Jordan, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, Emir of Kuwait, Sheikh Mohammed bin Rashid Al-Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai attended the meeting. The UAE, Kuwait and Saudi Arabia agreed an aid package for Jordan of $2.5 billion.

Some major importers of Iranian crude have sent mixed signals on their willingness to abide U.S. sanctions, particularly as inventories remain low.

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