US Claims Oil Majors Can Offset Falling Supplies

Saudi Arabia, the United States and Russia can between them raise global output in the next 18 months to compensate for falling oil supplies from Iran and elsewhere, US Energy Secretary Rick Perry said on a visit to Moscow on Friday. US sanctions on Iran’s oil exports, which come into force in November, have already cut supply back to two-year lows, while falling Venezuelan output and unplanned outages elsewhere could push up crude prices, Reuters reported.

In an interview with Reuters, Perry said he felt comfortable about the outlook for global crude output and for oil prices.

“I do not foresee spikes,” Perry said, although he added there was always potential for unforeseen events.

Some analysts have expressed concerns about Saudi Arabia’s long-term ability to significantly boost output.

But Perry said, “There is a number of things going on in the kingdom that continue to give me a very positive feeling about their ability to maintain their level and even increase their level” of crude production.