Saudi Arabia ready to replace Iranian oil after end of waivers – minister

Saudi Arabian Energy Minister Khalid al-Falih has said the kingdom is ready to meet global consumer oil demand after waivers granted by Washington to buyers of Iranian oil expire.

“I confirm our commitment to meet all these requests (to replace Iranian oil). But at the same time, we will do this remaining part of the OPEC+ deal, we will stick to it. We do not need to voluntarily exceed the limits set,” Falih told RIA Novosti. He noted that Iranian exports were not significant.

“The only indicator I have is consumers’ demand for Saudi oil... These figures are moderate at the moment, the demand is healthy, there is nothing to worry about... There is no shortage on the [global oil] market,” he said.

According to the minister, Saudi oil production until the end of May will be below the level set in the global deal. That is “significantly less” than 10 million bpd, with exports below seven million bpd next month, he explained.

“We are comfortable with the overall situation on the [global oil] market. It is healthy, it is well-supplied, nothing to worry about,” Falih said.

A global deal on oil production led by Russia and Saudi Arabia could be extended to the end of 2019, the minister said without specifying whether or how much output levels could change.

“We will look at [global oil] inventories – are they higher or lower than the normal level and we will adjust the production level accordingly. Based on what I see now... I am eager to say there will be some kind of agreement,” he said.

READ MORE: Saudi Arabia to 'stabilize' oil market after US ends sanction waivers on Iranian crude – Riyadh

Last year, the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers agreed to reduce output by 1.2 million bpd in an effort to boost oil prices.

They will meet on June 25-26 to decide whether to extend the deal.

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