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Saudi Arabia will quietly add oil to the market in the coming months to offset the decline in Iran's output, but fears that it will have to limit its output next year to balance global supply and demand.
US President Donald Trump urged the kingdom, OPEC's biggest producer, to lower oil prices ahead of a meeting in Algiers between several OPEC ministers and allies, including Russia.
Sources confirmed to CNBC that Saudi Arabia was ready to put up to 550,000 additional barrels on the market. The gains will come from about 200,000 barrels a day of its Kurais oil field, as well as the ability to recover some pipeline problems with the Manifa field.
Sources indicate, however, that this increased supply depends on demand. If demand is apparent, the supply will increase accordingly, OPEC members told CNBC.
But Riyad decided not to insist on an official increase now that it realized that it would not guarantee the agreement of all the producers present during the negotiations, some of which lacked production capacity and could not increase quickly production.
Such a decision would have disrupted relations between producers, sources told Reuters, the Saudis wanting to maintain unity within the OPEC + alliance in case Riyadh wants to change course in the future and seek collaboration.
"There are only two months left until the end of the year, so why create tensions between Saudi Arabia, Iran and Russia? a source close to Algiers talks told Reuters.
Saudi Energy Minister Khalid al-Falih said on Sunday that he feared that oil production gains, mainly from the United States, will exceed the expected increase in oil demand and result in a global inventory.
"Next year, threats to demand outnumber those of supply," said the second source, who is also aware of the discussions.
Oil prices reached their highest level since 2014 above $ 80 a barrel this week, fearing a sharp drop in Iranian oil exports due to new US sanctions, which will worsen the oil deficit and production declines in Venezuela.
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