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saudi arabia oil production

Saudi Arabia has announced it will respond with “necessary measures” to attacks on two oil facilities as it reiterated the accusation that Iran was behind them.

Minister of State for Foreign Affairs Adel al-Jubeir said the weapons used were Iranian and vowed to release the full findings of the investigation.

However, Iran denies involvement in the attacks.

Earlier, a senior Iranian military official said Iran was ready to destroy any aggressor after the US announced it was sending troops to Saudi Arabia.

Iranian-backed Houthi rebels in Yemen have said they were responsible for the drone and missile strikes on September 14 that affected the global oil supply.

Tensions between the US and Iran have escalated since President Donald Trump abandoned a deal limiting Iran’s nuclear activities last year and reinstated sanctions.

Speaking to reporters in Riyadh, Adel al-Jubeir said Saudi Arabia was in consultation with its allies and would take necessary and suitable measures after its investigation was complete, without giving details of possible actions.

The Saudi minister repeated that the strikes targeting the Abqaiq oil facility and the Khurais oil field had come from the north and not from Yemen but did not give a specific location, and urged the international community to take a stand.

He said: “The kingdom calls upon the international community to assume its responsibility in condemning those that stand behind this act, and to take a firm and clear position against this reckless behavior that threatens the global economy.”

Image source: Wikimedia Commons

The Saudi defense ministry showed off on September 18 what it said were the remains of drones and cruise missiles proving Iranian involvement.

The US has also accused Iran of being behind the attacks, and unnamed senior officials have told US media that the evidence suggests the strikes originated in the south of Iran.

On September 20, Secretary of Defense Mark Esper said the US would send a yet-to-be-decided number of troops to Saudi Arabia to boost the country’s air and missile defenses.

President Donald Trump then announced new sanctions against Iran, focusing on the country’s central bank and its sovereign wealth fund, while signaling that he wanted to avoid military conflict.

President Donald Trump has urged Saudi Arabia to increase its oil production to combat the rising cost of fuel.

He tweeted that he had asked King Salman of Saudi Arabia to raise oil output by up to two million barrels a day.

President Trump said the move was needed due to “turmoil and dysfunction in Iran and Venezuela”.

Oil prices rose last week, partly due to US plans to re-impose sanctions on Iran, a major oil producer.

The OPEC group agreed to increase output, as did Russia, but this failed to reassure markets.

The Saudi Press Agency confirmed that President Trump and King Salman had spoken by phone, giving few details. According to the news agency, they had discussed the need to “preserve the stability of the oil market”.

However, the statement did not confirm that Saudi Arabia had agreed to the two million barrels a day figure.

Image source Public Domain Pictures

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Saudi Arabia is the world’s biggest exporter of oil and produced about 10 million barrels a day in May. The country is reported to have between 1.5 million and two million barrels a day of spare capacity – but experts told The Wall Street Journal it might not be keen to meet the president’s request.

A Saudi official told the WSJ: “Saudi Arabia does not really like going beyond 11 million barrels a day and has no intention of expanding its current production capacity. It is expensive.”

Donald Trump has repeatedly criticized OPEC even though US ally Saudi Arabia is a core member.

On April 20, President Trump tweeted that oil prices were “artificially very high”, saying this was “no good” and “will not be accepted!”

Iran, another OPEC member, has accused Donald Trump of trying to politicize the group and has blamed Riyadh for doing his bidding.

On June 30, Iranian Supreme Leader Ayatollah Ali Khamenei said the US was trying to drive a wedge between Iranians and their government using “economic pressure”.

He cautioned on his website: “Six US presidents before him tried this and had to give up.”

The value of Iranian currency, the rial, has tumbled since the US backed out of the Iran nuclear deal in May.

Earlier this week, thousands of traders at Tehran’s Grand Bazaar marched in protest against rising prices and the plummeting value of the rial. It was the biggest protest Tehran has seen since 2012.