Saudi reassures on oil supply, says will meet demand

He added there is NO guarantee that oil prices would not go higher once anti-Iran sanctions come into force next month.

Mr Al Falih said there is a global need to invest in spare oil capacity to meet market demand in case of disruptions to supply. "I would discourage Russian Federation from even considering this". MSCI's gauge of stocks across the globe at one point shed more than 2 per cent and hit its lowest point since September 2017. "So obviously Russian Federation is a heavyweight both in terms of production and in terms of political influence", noted Falih during an interview with TASS agency.

"It is a very unpredictable situation from supply in particular, but demand also has its uncertainties with the trade frictions", he said.

"The only certainty for 2019 is that we need to be ready to act promptly and effectively".

Global growth prospects have continued to deteriorate amid the recent sell-off in equity markets, which have largely stemmed from the weakness in Asia.

Iranian Oil Minister Bijan Namdar Zanganeh shrugged off U.S. plans to drive the country's crude exports down to zero, saying the Islamic Republic's oil exports can not be stopped.

Output remained unchanged at 10.9 million barrels per day (bpd), slightly below a record 11.2 million bpd reached at the start of October.

"But we do not know what is going to happen in other countries". However, buyers of Iranian crude are said to be increasingly confident that they will get at least some waivers when the USA measures return on November 4. "So we have to use oil reserves", he said.

Saudi Arabia initially claimed Khashoggi left freely after visiting the consulate but, as worldwide pressure mounted, the kingdom said he died inside the mission when an argument degenerated into a "fist fight".

He added that oil and gas will continue to occupy two thirds of the energy mix during the next four or five decades.

Following an extension of that agreement, the price of crude has risen to about $80/bbl, and analysts have been trying to guess whether the accord would be ditched amid a dramatic fall in inventories and a better market balance. Secondly, there are potential declines in different countries like Libya, Nigeria, Mexico and Venezuela.

Brent crude, the global benchmark, was down $1.28 to $75.16 a barrel at 0855 GMT.

The previously unreported moves by Kunlun highlight the mounting pressure Beijing faces as Washington reimposes sanctions targeting Iran's financial and oil sectors from early November.

  • Zachary Reyes