Oil Stumbles on U.S. Stockpile Worry and Saudi Production Pledge

An oil tanker is seen off the port of Bandar Abbas southern Iran

An oil tanker is seen off the port of Bandar Abbas southern Iran

"Significant investment flows" have returned to the oil and gas industry that will bring on new supplies to help replace losses in areas such as the North Sea and in some OPEC countries, he said. But the scandal does reveal one thing.

The pledge comes despite Saudi Arabia's previous threats to retaliate to any sanctions with "greater action".

In addition to its crude investments, Saudi Arabia intends to partner in liquefied natural gas projects overseas and start trading LNG in the future.

Saudi Arabia, the world's biggest oil exporter, has boosted production to 10.7 million barrels a day and is nearing an all-time high.

Most companies and countries are...

Additionally, Fatih Birol, executive director of the International Energy Agency (IEA), said on Monday that other producers may struggle to fully make up for the expected Iran disruption, and that oil prices could rise further.

Oil prices spiked on the move, as they did later in 1979 because of the Iranian revolution.

"It will become an open-ended agreement to continue to monitor and work together to stabilize the markets".

Oil prices fell more than 4 percent on Tuesday as investors sold off stocks amid concerns about slowing global economic growth.

West Texas Intermediate for December delivery declined US$2.88 to US$66.48 a barrel at 1:35 p.m. on the New York Mercantile Exchange, slipping below its 200-day moving average for the first time in a year.

The oil market has been concerned that Saudi Arabia might cut crude supply in retaliation for potential sanctions over the killing of journalist Jamal Khashoggi. He added that Riyadh had capacity to increase output to 12 million bpd and its Gulf OPEC ally, the United Arab Emirates, could add another 0.2 million bpd.

India-the world's third-largest oil importer and the second-biggest oil customer of Iran-is unlikely to see a long-term impact on its oil import bill from the USA sanctions on Iran's oil coming into force in less than two weeks, Frank-Jürgen Richter, chairman of independent think tank Horasis, told the Times of India.

The American Petroleum Institute is scheduled to release data on U.S. crude stockpiles on Tueday afternoon, followed by more comprehensive report by the U.S. Department of Energy on Wednesday.

Other OPEC members, meanwhile, had added only 105,000 barrels per day of extra oil in total during the period, which means they are not capable of producing more than current levels, he said.

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