Saudi Energy Minister on Iranian oil loss: We only react to reality

Saudi Energy Minister Prince Abdulaziz bin Salman said that Saudi Arabia will only "react to reality" when asked on Thursday if it and Russia would replace any possible loss of Iranian crude oil.

Speaking at an economic conference in St Petersburg the prince added that OPEC+ was a reliable organization that was attentive when circumstances prevailed. He declined to comment on hypothetical question.

The price of oil has risen by more than $10 in the last week due to Middle East tensions after Israel's attack on Iran.

Although both sides have attacked energy infrastructures in their respective countries, there has not yet been a major disruption of Middle Eastern oil production or exports.

Analysts say that the U.S. weighs a direct participation in the conflict. This option would increase the risk premium on oil prices, and thus the likelihood of energy supply disruptions.

Iran is a part of the Organization of Petroleum Exporting Countries (OPEC), but it is not subject to the production reductions that the group, along with its allies and Russia included, has in place.

OPEC+ (as the alliance is called) was increasing production targets for eight members of the group before Israel's last-week attack on Iran.

Next, on July 6, the group of eight, which includes Saudi Arabia and Russia, as well as Kuwait, Oman Algeria, Iraq and Kuwait, will decide whether or not to continue increasing production from August.

Russia initially wanted to pause a production increase of 411,000 bpd in July but agreed that the increase would go ahead.

(source: Reuters)