Saudi, UAE see sufficient oil supplies, rising stocks

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JEDDAH -- Oil supplies were sufficient and stockpiles were still rising despite massive output drops from Iran and Venezuela, said OPEC kingpin Saudi Arabia and key producer UAE on Sunday, as oil expo

rters met in Jeddah.

"We have seen inventory building. I don't think it makes sense" to alter the existing deal, said Suheil al-Mazrouei. The meeting comes days after sabotage attacks against tankers in highly sensitive Gulf waters and the bombing of a Saudi pipeline -- the latter claimed by Iran-aligned Yemeni rebels."We have strong industry security", he told reporters.The meeting also comes as the full impact of re-instated US sanctions against Iran kick in, slashing the Islamic republic's crude exports.

Iran's output is already at its lowest level in over five years, but could tumble in May to levels not seen since the devastating 1980-1988 Iran-Iraq war. Iran has repeatedly threatened to close the strait in case of war with the US, which said this month it was sending an aircraft carrier and strike group to the region.

 

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