Al-Falih: We will work with major producers to offset oil supply shortage

Saudi Arabia’s Energy Minister Khalid Al-Falih said on Wednesday the Kingdom will work closely with major OPEC and non-OPEC producers as well as key oil consumers to lessen the impact of any supply shortages after US withdrawal from the Iran nuclear deal.
“Following the US withdrawal from Iran (nuclear) deal, I would like to confirm our commitment to oil market stability for the benefit of producers & consumers,” Falih wrote on his official twitter account.
“I am in close contact with OPEC’s presidency, Russia and the US, and will be contacting other producers and major consumers over the next few days to ensure oil market stability.”
On Tuesday, US President Donald Trump abandoned a nuclear deal with Iran and announced plans for the “highest level” of sanctions against the OPEC member.
Earlier on Wednesday, an OPEC source familiar with Saudi Arabia’s thinking said that the Kingdom is monitoring the impact on the oil market from the US withdrawal from the Iran nuclear deal and is ready to offset any potential shortage but it will not act alone to fill in the gap.
Iran is the third-largest OPEC oil producer, after Saudi Arabia and Iraq.
“People shouldn’t take it for granted that Saudi Arabia will produce more oil single-handedly. We need to assess first the impact if there is any, in terms of disruption, in terms of a reduction of Iran’s production,” the OPEC source told Reuters on Wednesday.