Saudi Arabia said to be comfortable with Brent oil above $80

London, UK – Saudi Arabia is now comfortable with Brent oil prices rising above US$80 a barrel, at least in the short term, as the global market adjusts to the loss of Iranian supply from US sanctions, according to people familiar with the kingdom’s view.

The world’s largest exporter has tried to keep crude from trading above US$80 so far this year, in part because US President Donald Trump sent several tweets in May and June calling for OPEC to rein in prices as they flirted with that level.

In recent weeks, Saudi Oil Minister Khalid al Falih and other senior officials have discussed the oil market with investors, traders and other market participants in London, Houston and Washington, the same people said.

During the exchanges of views, the Saudis expressed concern both about the impact of American sanctions on Iran and effect of emerging-market turmoil on oil demand growth. Saudi officials were careful to avoid pinpointing a price target in their conversations, saying that while the kingdom has no desire to push prices higher than US$80 a barrel, it may no longer be possible to avoid it.

Oil rose on Tuesday as Saudi Arabia was said to be comfortable with Brent crude exceeding US$80 a barrel. Brent crude on Tuesday jumped two per cent to an intraday high of US$79.73 a barrel, after touching US$80.13 a barrel earlier this month.