Iranian oil supplies are set to drop after imposition of US sanctions and speculation is gathering pace that other OPEC producers will likely produce more to keep the market well supplied.
A report by Washington Post dated May 9 said that Saudi Arabia (World’s largest oil exporter) could provide some cushion for the loss of Iranian supplies.
However, the cartel is no hurry to decide whether to drill more oil to compensate for the drop in exports from Iran, four sources familiar with the issue said, according to Reuters.
The news will likely pour cold water over speculation the other major producers will pump more oil and could disappoint traders expecting a big drop in oil prices.
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