Oil price rise: Saudi Arabia warned that OPEC may cut output causing costs to skyrocket | World | News

Brent crude futures went up by 32 cents (27 pence) to $96.80 (£82.28) per barrel while US West Texas Intermediate (WTI) crude rose by 37 cents (31 pence) to $90.73 (£77.1) per barrel.

This month benchmarks are down 12 percent and eight percent respectively.

OPEC’s leader Saudi Arabia said on Monday that “the Organisation of the Petroleum Exporting Countries stands ready to reduce production to correct the recent oil price fall driven by poor futures market liquidity and macro-economic fears, which has ignored extremely tight physical crude supply”, reported CNBC.

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman told Bloomberg that OPEC has “OPEC+ has the means and flexibility to deal with challenges”.

This comes as Europe deals with a fresh crisis in their oil supply due to a damaged pipeline system bringing oil from Kazakhstan through Russia.

Sanctions against Russian oil and gas are already threatening Europe’s supply.

On Monday Iran accused the US of “procrastinating” over plans to revive Iran’s nuclear deal.

Washington has denied this, saying a deal was getting closer due to Tehran’s flexibility.

American spokesman Ned Price told CNN: “A deal is closer now than it was two weeks ago, but the outcome of these ongoing discussions still remains uncertain as gaps do remain.”

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“It takes into account the Iranian feedback and we’ll provide that to the EU as soon as we’re able.”

He added that the US was “conveying (its) feedback directly and privately to the EU”.

The leaders of Britain, France and Germany have also been involved in the conversation to revive the 2015 deal.

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