William Ryan | SUSRISblog
Saudi Arabia’s monthly crude oil production jumped 7.3% in November topping 10.04 million barrels per day, a 30-year high mark, according to data compiled by JODI.
The output numbers “came with an increase in exports and a decrease in domestic consumption,” according to Bloomberg Television’s Lara Setrakian who added, “it reflects OPEC as a whole.” JODI figures showed overall OPEC numbers on the increase. Setrakian noted Saudi Arabia, “is able and generally willing to make up market shortfalls,” citing the Libyan crisis and the potential for loss of Iranian product from the market.
[Saudi's November Oil Output Rises to 30-Year High - Bloomberg]
Regarding Iran the stakes have been raised by Tehran’s threat to choke off maritime traffic in the Strait of Hormuz — egress point for almost all GCC oil exports and about 20% of oil traded on the global markets. The threats are a result of heavy anti-Iran sanctions over its nuclear development program by the United States and other nations alarmed over the potential for a nuclear-armed Iran. This week the European Union moved to increase sanctions, banning Iranian oil imports, to drive Iran back to talks. EU foreign ministers agreed to ban any new oil contracts and to end existing ones by July, according to Foreign Policy’s “Mideast Daily.”
Oil industry analyst Sam Ciszuk of KBC Process Technology told Bloomberg filling the Saudis production boost, “would really put themselves out in the forefront of the whole economic warfare on Iran and Iran is after all a neighbor. They will have to live with Iran over the longterm. Saudi Arabia would effectively bankroll the whole economic pressure effort by producing much more of its crude potentially roughly at the same prices.”
CNNi’s Global Exchange John Defterios talked with Saudi Arabian unofficial “ambassador at large” Prince Turki al-Faisal about the Iranian issue — the Gulf tensions and increased oil production — yesterday from Riyadh. Here is the exchange:
CNNi: I asked Prince Turki in our exclusive interview, what would it take to bring Iran back to the table. He is suggesting now that we should make the Middle East a non-nuclear zone. Here’s his answer.
Prince Turki Al-Faisal: I think if we spend effort and time to implement the zone free of weapons of mass destruction that will definitely not only bring Iran, back as you say, into negotiations, but will eliminate all of the accoutrements that have come about as a result of this issue of enrichment and developing nuclear weapons.
CNNi: China has suggested as a member of the Security Council that additional sanctions are not the way to bring Iran back to the bargaining table, but the sanctions are pushing ahead in the European Union, the U.S. has isolated the central bank of Iran. Are you a supporter of the sanctions regime to bring them to the negotiating table?
Prince Turki Al-Faisal: The Kingdom has publicly said that we support sanctions, but the sanctions we support have to come from the Security Council. That is one aspect. I still insist that establishing the zone is a much preferable route for the world community to deal with this issue.
CNNi: A week ago.. ..Saudi Arabia offered to provide up to two and a half million barrels a day to the market if needed, if Iranian oil exports were targeted. Do you still stand by that position, as the wisest position to fill that void of Iranian crude?
Prince Turki Al-Faisal: The basic interests of the Kingdom on the oil issue are two fold. One is to maintain a price level that is affordable by the world community. And not just by the rich nations. And secondly, it is to make sure that the poor countries in Africa, in Asia, in Latin America can afford their energy bill. So, if these two come together than the Kingdom is happy.
CNNi: Is it time in your view to negotiate in alignment with the United States and Europe around the Security Council to get to the bottom of where Iran is going with its nuclear development.
Prince Turki Al-Faisal: If you take issues like Syria now, and issues like Iran, the pity of it is that as these big powers negotiate, in some cases as in Palestine let’s say and as in Syria, people are losing their lives. China and Russia as well as the other members of the Security Council have responsibility to the world community, that is why they enjoy veto power. Issues like Iran require immediate attention.
How has Iran reacted to the pressures? A Foreign Ministry statement, reported by Bloomberg, declared, “The Iranian nation has many times proved that it would never yield to pressure and unjust moves, aimed at abandoning its legitimate and legal rights,” adding, “Any confrontation move against the independence and advancement of the independent countries would lead to further complication of the present day world crises.”
***
Related Links:
{ 3 trackbacks }