Russia: oil price hike reflects risks after attacks on Saudi oil

by Reuters
Tuesday, 17 September 2019 06:00 GMT

ANKARA, Sept 17 (Reuters) - The spike in global oil prices on Monday was expected as prices need to reflect risks after an attack on Saudi Arabia's oil infrastructure, Russian energy minister Alexander Novak told reporters late on Monday.

The attack on Saudi Arabia that triggered the biggest jump in oil prices in almost 30 years was carried out with Iranian weapons, a Saudi-led coalition said on Monday, as President Donald Trump said the United States was "locked and loaded" to hit back.

"Everyone expected the prices to rise somewhat on Monday, because the price takes into account uncertainty and risks. I think the market will be reacting on the situation based on the information that will be coming out from Saudi Arabia," Novak said.

Speaking to reporters in an airplane on their way back to Moscow from Ankara on Monday evening, Novak said he did not have time to talk to Saudi energy minister as Novak was busy at talks between leaders of Russia, Turkey and Iran held on Monday.

"We can talk (later). Our specialists are in contact," Novak said. Russia is an ally of Riyadh in a global pact to curb supply.

The leaders of Turkey, Russia and Iran met in Ankara on Monday and agreed to try to ease tensions in northwest Syria's Idlib region, but disagreements between the countries appeared to linger, especially over the threat from Islamic State.

When asked whether there was the need to call for a meeting between Russian oil producers and the ministry to update their approach after the Saudi incident, Novak replied with a question: "What kind of approaches can be developed if we do not have any information?"

Earlier on Monday, Novak said there was enough oil in global stockpiles to replace barrels Saudi Arabia had temporary lost due to the attacks. (Reporting by Vladimir Soldatkin; writing by Polina Devitt; Editing by Chizu Nomiyama)

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