Saudi Arabia struggling to sell oil after raising output to please Trump, say financial experts

By On July 22, 2018

Saudi Arabia struggling to sell oil after raising output to please Trump, say financial experts

Saudi Arabia has rushed to boost oil production under pressure from US President Donald Trump â€" only to discover that global markets might not need it yet, according to some financial experts.

The kingdom’s crude oil output surged the most in three years last month, as the US president demanded his ally’s help in cooling petrol prices and filling in the supply gap that will be created by his sanctions on Iran.

However, the Saudis are struggling to sell as much extra oil as they’d ho ped and are privately fretting that they may have opened the taps too quickly, according to people briefed by Riyadh in the last few days.

Martijn Rats, global oil strategist at Morgan Stanley, said: “Saudi Arabia and several other members of the Organisation of Petroleum Exporting Countries (Opec) have increased exports sharply ahead of sanctions on Iran, and the timing mismatch between these effects is pressuring oil prices.”

A rare public statement from the Saudi Energy Ministry earlier this week could be taken as an illustration of their unease.

It rejected as “without basis” any concerns that the kingdom was moving to oversupply world markets. Exports would be stable this month and fall in August, it said.

At the last Opec meeting in late June, the Saudis and their allies â€" which include several neighbours from the Gulf Cooperation Council and also non-Opec producer Russia â€" promised to boost output by about one million barrels a day to offset disruptions in Venezuela and Libya, plus the looming losses in Iran.

They were reactin g to pressure from President Trump, who was bashing the cartel on Twitter after the London crude oil price hit a three-year high of more than $80 (£61) a barrel in May.

Prices have since retreated to about $73 as Libya restored some halted output and the escalating US-China trade war stoked fears about the strength of demand.

World news in pictures

51 show all World news in pictures

1/51 20 July 2018

Men push a car past a flooded street in Ahmadabad, India. Hundreds of people have been rescued from flood affected areas in the past week as incessant rains continue to lash Gujarat state AP

2/51 19 July 2018

Arab lawmakers stand up in protest during a Knesset session in Jerusalem. Israel's parliament approved a controversial piece of legislation that defines the country as the nation-state of the Jewish people but which critics warn sidelines minorities AP

3/51 18 July 2018

The 12 boys and their soccer coach who were rescued from a flooded cave arrive for a news conference in the northern province of Chiang Rai, Thailand REUTERS

4/51 17 July 2018

President Barack Obama delivers the 16th Nelson Mandela annual lecture, marking the centenary of the anti-apartheid leader's birth, in Johannesburg, South Africa REUTERS

5/51 16 July 2018

French supporters celebrate on the Champs Elysees their team's victory after the World Cup 2018 final between France and Croatia EPA

6/51 15 July 2018

Hugo Lloris lifts the trophy after France beat Croatia 4-2 in the World Cup final in the Luzhniki Stadium in Russia AP

7/51 14 July 2018

Germany's Angelique Kerber beat seven-time champion US player Serena Williams in the Wimbledon final. Kerber won her first Wimbledon title PA

8/51 13 July 2018

Firefighters using fire helicopters fighting wildfires in Sordal in Setesdalen in the southern part of Norway. The fires are thought to be caused by lightning in the very dry landscape EPA

9/51 12 July 2018

The Syrian national flag rises in the midst of damaged buildings in Daraa-al-Balad an opposition-held part of the southern city of Daraa. Syria's army entered rebel-held parts of Daraa city, state media said, raising the national flag in the cradle of the uprising that sparked the country's seven-year war, following a deal for rebels to hand over their heavy weapons in Daraa al-Balad and other opposition-held parts of the city AFP

10/51 11 July 2018

US President Donald Trump and Nato Secretary General Jens Stoltenberg attend a bilateral breakfast ahead of the NATO Summit in Brussels Reuters

11/51 10 July 2018

The last four Thai Navy SEALs come out safely after completing the rescue mission inside a cave where 12 boys and their soccer coach have been trapped since June 23, in Mae Sai, Chiang Rai province, northern Thailand. Thailand's navy SEALs say all 12 boys and their soccer coach have been rescued from a flooded cave in far northern Thailand, ending an ordeal that lasted more than two weeks Royal Thai Navy via AP

12/51 9 July 2018

Indonesia worker and firefighters try to extinguish a fire on fishing boats at Benoa harbour in Denpasar, on Indonesia's resort island of Bali. A massive fire laid waste to dozens of boats at a Bali port as firefighters battled to bring the dramatic blaze under control AFP/Getty

13/51 8 July 2018

Russia's football team are greeted celebrated by fans during a visit at the Moscow's fan zone after they were knocked out of the World Cup in their quarter final match against Croatia on penalties AFP/Getty

14/51 7 July 2018

Residents look over the flooded town by heavy rain in Kurashiki, Okayama Prefecture, western Japan. Heavy rainfall killed 47 people, missing more than 49 people and five others in serious condition in southwestern and western J apan, public television reported on 07 July 2018. Japan Meteorological Agency has warned record rainfall on 06 July for flooding, mudslides in southwestern and western Japan. In nine prefectures in western and southwestern Japan, authorities issued evacuation orders to more than one million of people in southwestern and western Japan EPA

15/51 6 July 2018

An honour guard hold up a picture of Samarn Kunan, 38, a former member of Thailand's elite navy SEAL unit who died working to save 12 boys and their soccer coach trapped inside a flooded cave, at an airport in Rayong province, Thailand REUTERS

16/51 5 July 2018

The International Space Station, center, passes in front of the Moon in its Earth orbit as photographed from Salgotarjan, Hungary MTI via AP

17/51 4 July 2018

Former Malaysia Prime Minister Najib Razak (C) arrives at Kuala Lumpur High Court in Kuala Lumpur, Malaysia. Malaysia's former prime minister Najib Razak appeared in court to face graft charges linked to the the 1Malaysia Development Berhad (1MDB) scandal EPA

18/51 3 July 2018

Rescue workers come out from the Tham Luang cave complex, as members of under-16 soccer team and their coach have been found alive according to a local media' ;s report, in the northern province of Chiang Rai, Thailand Reuters

19/51 2 July 2018

Firefighters scramble to control flames surrounding a fire truck as the Pawnee fire jumps across highway 20 near Clearlake Oaks, California AFP/Getty

20/51 1 July 2018

Presidential candidate Andres Manuel Lopez Obrador greets supporters as he arrives at a polling station during the presidential election in Mexico City Reuters

21/51 30 June 2018

North Korea leader Kim Jong Un inspects Unit 1524 of the Korean People's Army (KPA) KCNA via Reuters

22/51 29 June 2018

Mount Agung's crater glows red from the lava as it spews volcanic smoke on Bali Island. The Indonesian tourist island closed its international airport, stranding thousands of travelers, as the Mount Agung volcano gushed a 2,500-meter (8,200-feet) column of ash and smoke AP

23/51 28 June 2018

The remains of market stalls smoulder after a fire swept through a marketplace in Nairobi, Kenya. Several people have died in the fire and about 70 are receiving hospital treatment, w ith rescue teams left searching through the scene AP

24/51 27 June 2018

Smoke rises in the rebel-held town of Nawa in southern Syria during airstrikes by Syrian regime forces. Syria's army launched an assault on the flashpoint southern city of Daraa state media said, after a week of deadly bombardment on the nearby countryside caused mass displacement. Government forces have set their sights on retaking the south of the country, a strategic area that borders Jordan and the Israeli-occupied Golan Heights AFP/Getty

25/51 26 June 2018

French President Emmanuel Macron greets Pope Francis at the end of a pri vate audience at the Vatican AFP/Getty Images

26/51 25 June 2018

The frame of an abandoned Peugeot 404 rests in Niger's Tenere desert region of the south central Sahara on Sunday, June 3, 2018. Once a well-worn roadway for overlander tourists, the highway 4,500 kilometers (2,800 miles) are a favored path for migrants heading north in hopes of a better life and more recently thousands who are being expelled south from Algeria AP

27/51 24 June 2018

Saudi women celebrate after they drove their cars in Al Khobar after the law allowing women to drive took effect. Saudi Arabia will allow women to drive from J une 24, ending the world's only ban on female motorists REUTERS

28/51 23 June 2018

People gather as the injured are helped by medics at the scene of an explosion during a rally to support the country's new reformist prime minister Abiy Ahmed in Meskel Square in Addis Ababa, Ethiopia. Reports say the blast occurred shortly after he addressed thousands of his supporters. He then spoke to the crowd afterwards, saying a people had been killed EPA

29/51 22 June 2018

Participants of the Dark Mofo Nude Solstice Swim are seen in the River Derwent at dawn, in Hobart, Australia Reuters

30/51 21 June 2018

Indian Prime Minister Narendra Modi participates in a mass yoga session along with other practitioners to mark International Yoga Day at the Forest Research Institute (FRI) in Dehradun. Tens of thousands of yoga practitioners worldwide on June 21 are expected to celebrate the fourth annual International Yoga Day, first proposed by the Indian PM in 2014 to the UN General Assembly and adopted unanimously AFP/Getty

31/51 20 June 2018

A woman and child are told they will have to wait before crossing the US border as confusion sets in following the Trump administration's "zero tolerance" policy on imm igration Getty

32/51 19 June 2018

People wave a banner with a picture of Turkish President Recep Tayyip Erdogan during a gathering of supporters of his ruling Justice and Development Party (AKP) in Istanbul, Turkey,. Turkish President Erdogan announced on 18 April that Turkey will hold snap presidential and parliamentary elections on 24 June 2018, after elections were scheduled to be held in November 2019 EPA

33/51 18 June 2018

Residents pass by a temple gate collapsed by an earthquake in Ibaraki, Osaka Prefecture, western Japan. The earthquake, which struck western Japan, killed three people and injured mor e than 50 EPA

34/51 17 June 2018

Juan Carlos Osorio, manager of Mexico's national football team, celebrates their World Cup victory against Germany Getty

35/51 16 June 2018

Kashmiri youths through stones during clashes between protestors and Indian government forces in Srinagar AFP/Getty Images

36/51 16 June 2018

People are silhouetted on the flybridge of a yacht as fireworks illuminates the sky over the Yas Viceroy luxury hotel on the first day of the Muslim holiday of Eid Al-Fitr at the Marina on Yas Island, Abu Dhabi EPA

37/51 15 June 2018

Somali Muslims take part in Eid al-Fitr prayer which marks the end of the holy month of Ramadan at the football pitch of the Jamacadaha stadium in Mogadishu AFP/Getty Images

38/51 14 June 2018

Artists perform during the opening ceremony of the 2018 World Cup in Russia ahead of the group A match between Russia and Saudi Arabia at Luzhniki Stadium in Moscow Getty

39/51 13 June 2018

Pope Francis arrives to lead the Wednesday general audience in Saint Peter's square at the Vatican Reuters

40/51 12 June 2018

US President Donald Trump shakes hands with North Korean leader Kim Jong Un during their historic meeting at the Capella Hotel on Sentosa island in Singapore Reuters

41/51 11 June 2018

US President Donald Trump looking at a cake being brought for him during a working lunch with Singapore's Prime Minister Lee Hsien Loong during his visit to The Istana, the official residence of the prime minister, in Singapore. Kim Jong Un and Donald Trump will meet on June 12 for an unprecedented summit, with the US President calling it a "one time shot" at peace AFP/Getty

42/51 10 June 2018

Muharrem Ince, presidential candidate of Turkey's main opposition Republican People's Party (CHP), delivers a speech from the roof of a bus during a campaign meeting in Istanbul AFP/Getty

43/51 9 June 2018

French President Emmanuel Macron, German Chancellor Angela Merkel and Japan's Prime Minister Shinzo Abe speaking to US Presidend Donald Trump during the second day of the G7 meeting in Charlev oix, Canada. Looking on is US National Security Advisor John Bolton EPA

44/51 8 June 2018

Former South African President Jacob Zuma sings and dances on stage after delivering a speech during a rally in his support outside the High Court, in Durban AFP/Getty

45/51 7 June 2018

Russian President Vladimir Putin listens to a question during his annual call-in show in Moscow. Putin hosts call-in shows every year, which typically provide a platform for ordinary Russians to appeal to the president on issues ranging from foreign policy to housing and utilities AP

46/51 6 June 2018

Protesters wave flags and shout slogans during a demonstration against the use of the term "Macedonia" in any solution to a dispute between Athens and Skopje over the former Yugoslav republic's name, in the northern town of Pella, Greece Reuters

47/51 5 June 2018

Police officers salute as the caskets of policewomen Soraya Belkacemi, 44, and Lucile Garcia, 54, arrive during their funeral in Liege. The two officers, and one bystander were killed in Liege on Tuesday by a gunman. Police later killed the attacker, and other officers were wounded in the shooting AP

48/51 4 June 2018

A rescue worker carries a child covered with ash after a volcano erupted violently in El Rodeo, Guatemala. Volcan de Fuego, whose name means "Volcano of Fire", spewed an 8km (5-mile) stream of red hot lava and belched a thick plume of black smoke and ash that rained onto the capital and other regions. Dozens were killed across three villages Reuters

49/51 3 June 2018

A recycler drags a huge bag of paper sorted for recycling past a heap of non-recyclable material at Richmond sanitary landfill site in the industrial city of Bulawayo. Plastic waste remains a challenging waste management issue due to its non-biodegrable nature, if not managed properly plastic ends up as litter polluting water ways, wetlands and storm drains causing flash flooding around Zimbabwe's cities and towns. Urban and rural areas are fighting the continuous battle against a scourge of plastic litter. On June 5, 2018 the United Nations mark the World Environment Day which plastic pollution is the main theme this year AFP/Getty

50/51 2 June 2018

Palestinian mourners carry the body of 21-year-old medical volunteer Razan al-Najjar during her funeral after she was shot dead by Israeli soldiers near the Gaza border fence on June 1, in another day of protests and violence. She was shot near Khan Yunis in the south of the territory, health ministry spokesman Ashraf al-Qudra said, bringing the toll of Gazans killed by Israeli fire since the end of March to 123 AFP/Getty

51/51

1/51 20 July 2018

Men push a car past a flooded street in Ahmadabad, India. Hundreds of people have been rescued from flood affected areas in the past week as incessant rains continue to lash Gujarat state AP

2/51 19 July 2018

Arab lawmakers stand up in protest during a Knesset session in Jerusalem. Israel's parliament approved a controversial piece of legislation that defines the country as the nation-state of the Jewish people but which critics warn sidelines minorities AP

3/51 18 July 2018

The 12 boys and their soccer coach who were rescued from a flooded cave arrive for a news conference in the northern province of Chiang Rai, Thailand REUTERS

4/51 17 July 2018

President Barack Obama delivers the 16th Nelson Mandela annual lecture, marking the centenary of the anti-apartheid leader's birth, in Johannesburg, South Africa REUTERS

5/51 16 July 2018

French supporters celebrate on the Champs Elysees the ir team's victory after the World Cup 2018 final between France and Croatia EPA

6/51 15 July 2018

Hugo Lloris lifts the trophy after France beat Croatia 4-2 in the World Cup final in the Luzhniki Stadium in Russia AP

7/51 14 July 2018

Germany's Angelique Kerber beat seven-time champion US player Serena Williams in the Wimbledon final. Kerber won her first Wimbledon title PA

8/51 13 July 2018

Firefighters using fire helicopters fighting wildfires in Sordal in Setesdalen in the southern part of Norway. The fires are thought to be caused by lightning in the very dry landscape EPA

9/51 12 July 2018

The Syrian national flag rises in the midst of damaged buildings in Daraa-al-Balad an opposition-held part of the southern city of Daraa. Syria's army entered rebel-held parts of Daraa city, state media said, raising the national flag in the cradle of the uprising that sparked the country's seven-year war, following a deal for rebels to hand over their heavy weapons in Daraa al-Balad and other opposition-held parts of the city AFP

10/51 11 July 2018

US President Donald Trump and Nato Secretary General Jens Stoltenberg attend a bilateral breakfast ahead of the NATO Summit in Brussels Reuters

11/51 10 July 2018

The last four Thai Navy SEALs come out safely after completing the rescue mission inside a cave where 12 boys and their soccer coach have been trapped since June 23, in Mae Sai, Chiang Rai province, northern Thailand. Thailand's navy SEALs say all 12 boys and their soccer coach have been rescued from a flooded cave in far northern Thailand, ending an ordeal that lasted more than two weeks Royal Thai Navy via AP

12/51 9 July 2018

Indonesia worker and firefighters try to extinguish a fire on fishing boats at Benoa harbour in Denpasar, on Indonesia's resort island of Bali. A massive fire laid waste to dozens of boats at a Bali port as firefighters battled to bring the dramatic blaze under control AFP/Getty

13/51 8 July 2018

Russia's football team are greeted celebrated by fans during a visit at the Moscow's fan zone after they were knocked out of the World Cup in their quarter final match against Croatia on penalties AFP/Getty

14/51 7 July 2018

Residents look over the flooded town by heavy rain in Kurashiki, Okayama Prefecture, western Japan. Heavy rainfall killed 47 people, missing more than 49 people and five others in serious condition in southwestern and western Japan, public television reported on 07 July 2018. Japan Meteorological Agency has warned record rainfall on 06 July for flooding, mudslides in southwestern and western Japan. In nine prefectures in western and southwestern Japan, authorities issued evacuation orders to more than one million of people in southwestern and western Japan EPA

15/51 6 July 2018

An honour guard hold up a picture of Samarn Kunan, 38, a former member of Thailand's elite navy SEAL unit who died working to save 12 boys and their soccer coach trapped inside a flooded cave, at an airport in Rayong province, Thailand REUTERS

16/51 5 July 2018

The International Space Station, center, passes in front of the Moon in its Earth orbit as photographed from Salgotarjan, Hungary MTI via AP

17/51 4 July 2018

Former Malaysia Prime Minister Najib Razak (C) arrives at Kuala Lumpur High Court in Kuala Lumpur, Malaysia. Malaysia's former prime minister Najib Razak appeared in court to face graft charges linked to the the 1Malaysia Development Berhad (1MDB) scandal EPA

18/51 3 July 2018

Rescue workers come out from the Tham Luang cave complex, as members of under-16 soccer team and their coach have been found alive according to a local media's report, in the northern province of Chiang Rai, Thailand Reuters

19/51 2 July 2018

Firefighters scramble to control flames surrounding a fire truck as the Pawnee fire jumps across highway 20 near Clearlake Oaks, California AFP/Getty

20/51 1 July 2018

Presidential candidate Andres Manuel Lopez Obrador greets supporters as he arrives at a polling station during the presidential election in Mexico City Reuters

21/51 30 June 2018

North Korea leader Kim Jong Un inspects Unit 1524 of the Korean People's Army (KPA) KCNA via Reuters

22/51 29 June 2018

Mount Agung's crater glows red from the lava as it spews volcanic smoke on Bali Island. The Indonesian tourist island closed its international airport, stranding thousands of travelers, as the Mount Agung volcano gushed a 2,500-meter (8,200-feet) column of ash and smoke AP

23/51 28 June 2018

The remain s of market stalls smoulder after a fire swept through a marketplace in Nairobi, Kenya. Several people have died in the fire and about 70 are receiving hospital treatment, with rescue teams left searching through the scene AP

24/51 27 June 2018

Smoke rises in the rebel-held town of Nawa in southern Syria during airstrikes by Syrian regime forces. Syria's army launched an assault on the flashpoint southern city of Daraa state media said, after a week of deadly bombardment on the nearby countryside caused mass displacement. Government forces have set their sights on retaking the south of the country, a strategic area that borders Jordan and the Israeli-occupied Golan Heights AFP/Getty

25/51 26 June 2018

French President Emmanuel Macron greets Pope Francis at the end of a private audience at the Vatican AFP/Getty Images

26/51 25 June 2018

The frame of an abandoned Peugeot 404 rests in Niger's Tenere desert region of the south central Sahara on Sunday, June 3, 2018. Once a well-worn roadway for overlander tourists, the highway 4,500 kilometers (2,800 miles) are a favored path for migrants heading north in hopes of a better life and more recently thousands who are being expelled south from Algeria AP

27/51 24 June 2018

Saudi women celebrate after they drove their cars in Al Khobar after the law allowing women to drive took effect. Saudi Arabia will allow women to drive from June 24, ending the world's only ban on female motorists REUTERS

28/51 23 June 2018

People gather as the injured are helped by medics at the scene of an explosion during a rally to support the country's new reformist prime minister Abiy Ahmed in Meskel Square in Addis Ababa, Ethiopia. Reports say the blast occurred shortly after he addressed thousands of his supporters. He then spoke to the crowd afterwards, saying a people had been killed EPA

29/51 22 June 2018

Participants of the Dark Mofo Nude Solstice Swim are seen in the River Derwent at dawn, in Hobart, Australia Reuters

30/51 21 June 2018

Indian Prime Minister Narendra Modi participates in a mass yoga session along with other practitioners to mark International Yoga Day at the Forest Research Institute (FRI) in Dehradun. Tens of thousands of yoga practitioners worldwide on June 21 are expected to celebrate the fourth annual International Yoga Day, first proposed by the Indian PM in 2014 to the UN General Assembly and adopted unanimously AFP/Getty

31/51 20 June 2018

A woman an d child are told they will have to wait before crossing the US border as confusion sets in following the Trump administration's "zero tolerance" policy on immigration Getty

32/51 19 June 2018

People wave a banner with a picture of Turkish President Recep Tayyip Erdogan during a gathering of supporters of his ruling Justice and Development Party (AKP) in Istanbul, Turkey,. Turkish President Erdogan announced on 18 April that Turkey will hold snap presidential and parliamentary elections on 24 June 2018, after elections were scheduled to be held in November 2019 EPA

33/51 18 June 2018

Residents pass by a temple gate collapsed by an earthquake in Ibaraki, Osaka Prefecture, western Japan. The earthquake, which struck western Japan, killed three people and injured more than 50 EPA

34/51 17 June 2018

Juan Carlos Osorio, manager of Mexico's national football team, celebrates their World Cup victory against Germany Getty

35/51 16 June 2018

Kashmiri youths through stones during clashes between protestors and Indian government forces in Srinagar AFP/Getty Images

36/51 16 June 2018

People are silhouetted on the flybridge of a yacht as fireworks illuminates the sky over the Yas Viceroy luxury hotel on the first day of the Muslim holiday of Eid Al-Fitr at the Marina on Yas Island, Abu Dhabi EPA

37/51 15 June 2018

Somali Muslims take part in Eid al-Fitr prayer which marks the end of the holy month of Ramadan at the football pitch of the Jamacadaha stadium in Mogadishu AFP/Getty Images

38/51 14 June 2018

Artists perform during the opening ceremony of the 2018 World Cup in Russia ahead of the group A match between Russia a nd Saudi Arabia at Luzhniki Stadium in Moscow Getty

39/51 13 June 2018

Pope Francis arrives to lead the Wednesday general audience in Saint Peter's square at the Vatican Reuters

40/51 12 June 2018

US President Donald Trump shakes hands with North Korean leader Kim Jong Un during their historic meeting at the Capella Hotel on Sentosa island in Singapore Reuters

41/51 11 June 2018

US President Donald Trump looking at a cake being brought for him during a working lunch with Singapore's Prime Minister Lee Hsien Loong during his visit to The Istana, the official residence of the prime minister, in Singapore. Kim Jong Un and Donald Trump will meet on June 12 for an unprecedented summit, with the US President calling it a "one time shot" at peace AFP/Getty

42/51 10 June 2018

Muharrem Ince, presidential candidate of Turkey's main opposition Republican People's Party (CHP), delivers a speech from the roof of a bus during a campaign meeting in Istanbul AFP/Getty

43/51 9 June 2018

French President Emmanue l Macron, German Chancellor Angela Merkel and Japan's Prime Minister Shinzo Abe speaking to US Presidend Donald Trump during the second day of the G7 meeting in Charlevoix, Canada. Looking on is US National Security Advisor John Bolton EPA

44/51 8 June 2018

Former South African President Jacob Zuma sings and dances on stage after delivering a speech during a rally in his support outside the High Court, in Durban AFP/Getty

45/51 7 June 2018

Russian President Vladimir Putin listens to a question during his annual call-in show in Moscow. Putin hosts call-in shows every year, which typically provide a platf orm for ordinary Russians to appeal to the president on issues ranging from foreign policy to housing and utilities AP

46/51 6 June 2018

Protesters wave flags and shout slogans during a demonstration against the use of the term "Macedonia" in any solution to a dispute between Athens and Skopje over the former Yugoslav republic's name, in the northern town of Pella, Greece Reuters

47/51 5 June 2018

Police officers salute as the caskets of policewomen Soraya Belkacemi, 44, and Lucile Garcia, 54, arrive during their funeral in Liege. The two officers, and one bystander were killed in Liege on Tue sday by a gunman. Police later killed the attacker, and other officers were wounded in the shooting AP

48/51 4 June 2018

A rescue worker carries a child covered with ash after a volcano erupted violently in El Rodeo, Guatemala. Volcan de Fuego, whose name means "Volcano of Fire", spewed an 8km (5-mile) stream of red hot lava and belched a thick plume of black smoke and ash that rained onto the capital and other regions. Dozens were killed across three villages Reuters

49/51 3 June 2018

A recycler drags a huge bag of paper sorted for recycling past a heap of non-recyclable material at Richmond sani tary landfill site in the industrial city of Bulawayo. Plastic waste remains a challenging waste management issue due to its non-biodegrable nature, if not managed properly plastic ends up as litter polluting water ways, wetlands and storm drains causing flash flooding around Zimbabwe's cities and towns. Urban and rural areas are fighting the continuous battle against a scourge of plastic litter. On June 5, 2018 the United Nations mark the World Environment Day which plastic pollution is the main theme this year AFP/Getty

50/51 2 June 2018

Palestinian mourners carry the body of 21-year-old medical volunteer Razan al-Najjar during her funeral after she was shot dead by Israeli soldiers near the Gaza border fence on June 1, in another day of protests and violence. She was shot near Khan Yunis in the south of the territory, health ministry spokesman Ashraf al-Qudra said, bringing the toll of Gazans killed by Israeli fire since the end of March to 123 AFP/Getty

51/51

Mike Wittner, head of oil market research at Societe Generale SA in New York, said: “They’re pushing out a heck of a lot of crude right now, and they’re worried about the downward pressure on prices. The Saudis are trying to thread a needle right now, and the width of that needle is $70 to $80.”

Oil prices rose in response to the ministry’s statement and Brent crude, the internat ional benchmark, was 0.5 per cent higher at $72.92 a barrel in London as of 8.13am on Friday.

Saudi Arabia initially planned to reach record output of 10.8 million barrels a day this month, people briefed on production policy said late last month.

That level was always dependent on the strength of domestic and international demand, so could end up ranging from 10.6 million to 11 million, they said.

The kingdom told fellow producers that output in July will be in line with June’s level of just below 10.5 million barrels a day, people familiar with the matter said.

The impact of US sanctions on Iran’s oil shipments, which remains highly uncertain, will play a big part in determining the final outcome.

Since quitting the international nuclear agreement with Iran, the Trump administration has sent conflicting signals, indicating last month that it intended to choke off Iranian crude exports entirely.

More recently, however, officials such as Secretary of State Mike Pompeo and Treasury Secretary Steve Mnuchin have suggested a more flexible approach could be taken.

Iranian exports are already starting to fall, with shipments to Europe slumping by about 50 per cent in June, according to estimates from the International Energy Agency.

A more significant supply gap won’t emerge until sanctions enter full force in November, according to the people who spoke with the Saudis, who asked not to be identified as the talks were private.

As a result, the kingdom seems to be having difficulty right now placing all the barrels it wanted to.

The problem is being compounded by weak appetite for crude in Asia, where concerns are building about the strength of demand, consultant Energy Aspects Ltd said.

Amrita Sen, Energy Aspects’ chief oil analyst said: “This is a market where the increase in GCC and Russian supplies has come at a time when the refinery bid is lacking.”

Saudi crude exports fell by about 500,000 barrels a day to 6.7 million in the first half of July compared with the same period in June, tanker tracking by Bloomberg shows.

According to the statement on Thursday from the Energy Ministry, which cited Saudi Arabia’s liaison to Opec Adeeb Al-Aama, exports for this month as a whole will be in line with June’s levels, and will decline by 100,000 barrels a day in August.

With so many factors shifting the balance b etween global supply and demand, the appetite for additional Saudi crude may change, especially as the extent of Iran’s losses becomes clearer.

Market sentiment could flip again to focus on worries over whether the kingdom has enough idle production capacity to prevent a shortage emerging on the global market.

Societe Generale’s Mr Wittner, said: “We have hardly started to see a reduction in flows from Iran. Though there’s a lot of crude coming out from Saudi Arabia now, spare capacity is really going to be the big issue going forward. And spare capacity is getting very tight very quickly.”

The Washington Post with contributions from Bloomberg’s Julian Lee and Wael Mahdi

Source: Google News Saudi Arabia | Netizen 24 Saudi Arabia

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