We’ll meet your oil needs: Saudi Arabia

Asia markets

REUTERS Toru Hanai

The Schork Report Founder Stephen Schork discusses why low oil prices aren't necessarily good for the economy and how high prices are a reflection of a strong economy.

USA crude price gains, however, were being limited by recent stock builds at Cushing, Oklahoma, the delivery point for WTI, where inventories have risen for three straight weeks, traders said.

Oil prices fell on Tuesday on evidence of higher USA oil production and increasing US crude inventories, but reports of a fall in Iranian oil exports helped to limit losses.

"We are seeing a well-supplied and balanced oil market right now".

"Saudi Arabia is now producing 10.7 million barrels of oil per day and our production capacity is up to 12 million barrels", Falih told reporters on the sidelines of the India Energy Nation Forum in Delhi.

The largest change is forecast in the Permian Basin of Texas and New Mexico, where output is expected to climb by 53,000 bpd to a new peak of 3.55 million bpd.

The South Korean government has been in talks with the United States government to get exemptions on Iran crude imports.

US oil production has increased steadily over the last five years, reaching a record high of 11.2 million bpd in the week to October 5. It also has an option to buy an additional 1 million tonnes.

API data are due at 4:30 p.m. EDT (2030 GMT) with the EIA at 10:30 a.m. EDT (1430 GMT) on Wednesday.

Oil prices edged up in cautious trade on Tuesday as expectations of higher US shale output and inventories vied with worries that crude supply from the Middle East could be disrupted by looming USA sanctions on Iran and growing tensions with top exporter Saudi Arabia. Senior officials on Monday had said that Indian oil companies have optional volumes built in their annual crude oil purchase contracts with suppliers like Saudi Arabia and Iraq that will be more than enough to make up for any shortfall in supplies from sanctions-hit Iran.

US President Donald Trump has vowed "severe punishment" if the Saudis ordered the killing of Washington Post journalist Jamal Khashoggi.

"To strengthen relations with India is a strategic priority of the Kingdom of Saudi Arabia", he said.

Trump has urged the Organization of the Petroleum Exporting Countries to raise output to help cover a shortfall due to new US sanctions on Iran.

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