MOSCOW, May 18. /TASS/. Saudi Arabia's Minister of Energy, Industry and Mineral Resources Khalid al-Falih and UAE Minister of Energy and Industry Suhail al Mazroui plan to discuss with Russia’s Energy Minister Alexander Novak oil supplies in connection with the US withdrawal from the nuclear agreement with Iran (the Joint Comprehensive Plan of Action (JCPOA)). This is according to a statement by the UAE Ministry of Energy.
"The two Ministers voiced their concerns about recent market volatility, fueled by anxiety over geopolitical events despite the availability of ample supply. They agreed to continue their consultations and to closely monitor the oil market and vowed to work together and with other producers within established mechanisms, as well as with major consumers to ensure market stability. The two Ministers renewed their commitment to security of supply and to work towards the interest of consumers and the health of the global economy. The Ministers agreed to meet jointly with the Russian Minister of Energy, Alexander Novak, in Saint Petersburg next week on the sidelines of the Saint Petersburg International Economic Forum to continue these consultations," the statement said.
St. Petersburg International Economic Forum will be held on May 24-26, 2018.
On May 8, US President Donald Trump announced Washington’s decision to withdraw from the Iran nuclear deal as it, he said, leaves Tehran a possibility to create a nuclear bomb bypassing all the restrictions. He noted another agreement with Iran should be signed.
The Joint Comprehensive Plan of Action (JCPOA), known as the deal on Iran’s nuclear program, was signed between Iran and six international mediators (the United Kingdom, Germany, China, Russia, the United States, and France) on July 14, 2015. On January 16, 2016, the parties to the deal announced beginning of its implementation. Under the deal, Iran undertakes to curb its nuclear activities and place them under total control of the International Atomic Energy Agency (IAEA) in exchange for removal of the sanctions imposed previously by the United Nations Security Council, the European Union and the United States over its nuclear program.
The day after Trump's announcement, Saudi Energy Minister Khalid al-Falih said that his country is ready to fill the oil shortage in the market in the event of sanctions against Iran. He also noted that he is consulting on this issue with Russia and the United States.
According to the calculations of the International Energy Agency (IEA), only four members of the OPEC + agreement - Saudi Arabia, Russia, Kuwait and the UAE - will be able to increase production in the shortest time so as to cover the dropped volumes of Iranian oil. The IEA estimates the current export of Iran at 2.4 million barrels per day, of which 1.2 million barrels could potentially fall under the restrictions.