The Saudi OPEC governor added that stable and balanced markets are the ideal market for both producers and consumers, and just as Saudi Arabia would not like to see unmet customer demand, an oversupplied market repels potential investment in the oil industry, curtailing future supply and contributing to volatility.
After the US pulled back from the 2015 Iran Nuclear Deal, US warned other nations including Japan to cease oil imports from Iran.
"Saudi Arabia and Russian Federation talking about supplying the markets, that would certainly have the potential to weigh on market sentiments", Lipow said. Exports would be stable this month and fall in August, it said.
Meanwhile, OPEC and non-OPEC producers cut oil output in June by 20 percent more than agreed levels, compared with 47 percent in May, two sources familiar with the matter told Reuters on Wednesday. Prices yesterday dropped 32 cents to US$72.58. -Chinese trade war that could dampen prices and demand were " oversold".
Iran wants to make sure that if sanctions are imposed on them by the United States - and if President Donald Trump gets his way to get Iranian oil exports down to zero by November - that the other members of the group don't move to take Iran's market share. "The Saudis are trying to thread a needle right now, and the width of that needle is $70 to $80".
The discount on crude prices in Midland, Texas widened by almost $10 a barrel against benchmark futures during the second quarter, as production in the Permian surged beyond pipeline capacity to move oil out of the region. That level was always dependent on the strength of domestic and global demand, so could end up ranging from 10.6 million to 11 million, they said.
Looking at other news, OPEC and non-OPEC compliance with recent supply restrictions is now running at 120% according to anonymous sources who spoke to Reuters.
Oil has fallen from recent highs as the U.S. As evidence, the Kingdom will reduce crude exports next month by roughly 100,000 bpd.
The average retail price for a liter of regular stood higher than ¥150 as of Tuesday, hitting its highest in 3½ years, according to the Agency for National Resources and Energy.
A sudden change in sentiment has hit the global oil market, with prices now down more than 10% from a lofty peak of $80 per barrel in May. The options under review range from a 5-million-barrel test sale to release of 30 million barrels that will pressure crude prices further.
Saudi Arabia boosted production sharply in June, raising crude shipments to world markets by 390,000 barrels a day to 7.6-million barrels a day, Kpler tanker-tracking data showed. Oversupply is one factor, however, things could get worse if the trade dispute between the USA and China drags down the global economy.