Saudi Arabia has denied that it had any role in Khashoggi's disappearance.
At the same time, Saudi Arabia and other Gulf producers have boosted their exports in response to the earlier rise in prices and pressure from the United States to cool the market. This week, data from the EIA showed that the inventories had climbed to more than 9.5 million barrels.
Saudi energy minister Khalid al-Falih told Russia's TASS news agency that his country had no intention of unleashing a 1973-style oil embargo on Western consumers, but rather was focused on raising output to compensate for supply losses elsewhere, such as Iran.
While Saudi Arabia is unlikely to outright cut production, the kingdom may not be in a rush to come to the rescue either.
U.S futures were up 31 cents at $71.88 a barrel. This is simply because of the sheer volume of the crude from Saudi. The buyers wanted a lower price, but it was not offered; it is while the stock market's activity is based on supply and demand. American refineries had been running near full capacity for months, converting crude oil into fuel at a record rate. Discounts, off-the-books shipments, bartering and other clandestine maneuvers should keep some Iranian oil flowing even after November 4.
Exports of Iranian crude oil have been in jeopardy since the White House announced that it is re-imposing unilateral sanctions against the Islamic Republic.
As the USA sanctions on Iran's oil sales targets the Iranian state-run sector, Iranian government made a decision to offer oil in the stock market to permit the private sector to export the product to foil US sanctions.
For decades Saudi Arabia has been a byword for political stability and conservatism, which made it into a reliable source of energy to worldwide markets.
The weapon can not be wielded in a targeted way against specific consuming countries because the oil market is global and fully integrated.
There have been some indications that implied India totally halting the import of Iranian crude oil.
Saudi Arabia has spent decades marketing itself as a reliable oil supplier, especially to customers in Asia, and any attempt to employ the oil weapon would destroy that carefully crafted reputation. As the week started, investors were focused on the ongoing tensions between the United States and Saudi Arabia. When sanctions were imposed on Russian Federation and despite the increase in oil prices, the ruble remained weak.
In the USA, nationwide crude stockpiles have risen for four straight weeks in the longest streak of gains since early 2017. We have no problem for supply, but we will definitely face difficulties in terms of demand. Worse yet is that OPEC countries are not producing as much oil as they have promised, according to media reports of internal documents.
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