Saudi Arabia readies to boost supplies over Iran oil sanctions

File photo. Photograph:( Reuters )

WION Web Team New Delhi, Delhi, India Nov 04, 2018, 04.35 PM (IST)

With Washington poised to curtail Iran's oil exports, OPEC heavyweight Saudi Arabia and its partners stand ready to ramp up supplies even as market conditions remain uncertain, analysts say.

The renewal of sanctions on the Islamic republic comes at a time of major supply disruptions in several producer nations and as US President Donald Trump aims to prevent an oil price hike.

Analysts expect that Iran's oil exports, which reach around 2.5 million barrels per day in normal times, to plunge by one million to two million bpd when sanctions take effect on November 5.

That is expected to strain an already tight market.

Meanwhile, thousands joined rallies in Tehran and other cities, carrying placards that mocked President Donald Trump, wiping their feet on fake dollar bills, and engaging in the usual ritual of burning the US flag.

This year's 39th anniversary fell just hours before Washington was set to reimpose sanctions -- including an oil embargo -- following its withdrawal from the 2015 nuclear deal earlier this year.

(With inputs from AFP)

Story highlights

The renewal of sanctions on the Islamic republic comes at a time of major supply disruptions in several producer nations and as US President Donald Trump aims to prevent an oil price hike.