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OPEC promises to compensate U.S. sanctions on Iran

Staff Writer |
OPEC is more focused on identifying the right level of oil inventory at its next meeting than the impact on supplies of new U.S. sanctions on Iran, UAE energy minister Suhail bin Mohammed al-Mazroui said.

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"That’s not what we are concerned about now. What we are concerned about in the next (OPEC) meeting is what is the right level of inventory that we should see, and (how) can we put this group together for longer," Reuters cited him as saying.

Mazroui said there was no reason to worry about supply, adding that this was not the first time an OPEC member had been in such a situation.

"We managed to solve the supply issue but we still believe we have the buffer (in oil supplies)... We will meet in June to discuss it," he added.

Russia's Energy Ministry is not able to predict oil prices, the country's acting Energy Minister Alexander Novak said.

Novak said that global oil prices are currently under the influence of geopolitics but "fundamentally the market is balancing out."

The Russian minister also noted that OPEC has "all the tools to balance the market" following the US decision to withdraw from the Iran nuclear deal.

According to him, it is too early to say what the impact of the US decision on the oil market will be. "In any case, we have all the tools that could be used to balance the market," Novak said.

"We will monitor the situation. In principle, as they said, the sanctions will resume within 180 days so we need to see how market reacts. It is too early now to say anything.

"Anyway, we have all the tools, which can be used to balance the market," he said.

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