Saudi Arabia has 'no intention' of 1973 oil embargo replay

Brent oil holds near $80 as Saudi Arabia plans output increase

"Hopefully more countries will join", he said.

Washington plans new sanctions targeting Iran's oil sector from November 4 with the aim of stopping the country's involvement in conflicts in Syria and Iraq, and bringing Tehran to the negotiating table over its ballistic missile programme.

"This incident will pass".

Falih said he would not rule out the possibility that Saudi Arabia would produce 1M-2M bbl/day more than current levels in future, and Saudi Aramco head Amin Nasser said it would take only three months to reach maximum production capacity of 12M bbl/day if needed.

Speaking at an investment conference in Riyadh, Falih also said OPEC and non-OPEC producers are expected to sign in December an "open-ended" agreement to continue cooperation in the energy markets. Shipping brokerage Eastport on Tuesday said crude prices were "widely expected to decline in coming months, as rising production in the USA offsets increasing global demand".

In a column published last week, Saudi-owned Al Arabiya channel's General Manager Turki Aldakhil warned that imposing sanctions on Riyadh could spark global economic disaster as oil could jump to $200 per barrel.

"The request that America made to Saudi Arabia and other OPEC countries is to be sure that if there is any loss of supply from Iran, that we will supply that. So we have to use oil reserves".

Concerns over the health of the global economy, leading to the equities sell-off, are seeping into the oil market. Saudi Arabia must put in place measures to ensure something like this can never happen again. We work to stabilize global markets and facilitate global economic growth.

"We have just upgraded our price forecasts for 2019 Brent by $20.5 per barrel to $83.5 per barrel", the United States bank said, adding that this "bullish argument is strongly driven by tighter supply due to Iranian sanctions and declining spare capacity".

On Tuesday, he said Saudi Arabia still intends to increase production to meet demand as US sanctions shrink Iran's crude exports.

There is no guarantee that the oil price will not exceed $100 per barrel next year, Falih said.

However, U.S. crude oil production has climbed by nearly a third since mid-2016, and the rising output could help to offset the loss of exports from Iran. Secondly, there are potential declines in different countries like Libya, Nigeria, Mexico and Venezuela.

USA crude fell US$3.17, or 4.6 per cent, to US$66.19 a barrel, after hitting a session low of US$65.74, the lowest level since August 20.

"Equities are weighing on oil prices", said UBS Group AG analyst Giovanni Staunovo.

Saudi Arabia's Energy Minister Khalid Al-Falih was reported by Reuters, with the key headlines found below.

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