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Saudi Arabia`s energy minister Khalid al-Falih said Wednesday that the country would work closely with OPEC as well as non-OPEC producers to mitigate the impact of any shortages that might arise following the US` decision to withdraw from the Iran nuclear deal.
`Following the US withdrawal from the Iran deal. I would like to confirm our commitment to oil market stability for the benefit of producers and consumers.` Falih said in a tweet. `Saudi will work closely with major OPEC. non-OPEC producers and with key consumers to mitigate the effects of any supply shortages.
`I am in close contact with OPEC `s presidency. Russia and the US. and will be connecting with other producers and major consumers over the next few days to ensure market stability.` he added.
President Donald Trump said Tuesday that the US would withdraw from the Iran nuclear deal and reimpose sanctions that have been frozen since January 2016 as part of the Joint Comprehensive Plan of Action.
The US decision sent oil futures surging Wednesday as traders digested the likely consequences.
July ICE Brent futures settled Wednesday at $77.21 b. up $2.36 on the day. while the June NYMEX contract rose $2.08 to $71.14 b.
The International Energy Agency said Wednesday that it was `ready to act` to alleviate any supply shortfall in the wake of the US move.
Noting tighter oil market conditions in recent months. the Paris-based agency — whose mandate is to safeguard global energy security — said it was monitoring the market situation.
`The restoration of sanctions on Iran. which exports 2.5 million b d of oil and is the world`s fifth-largest exporter. may have implications for the market balance.` the IEA said. `As ever. the IEA stands ready to act if necessary to ensure markets remain well supplied.`
