Saudi Arabia ready to boost oil export amid drop in oil prices

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Crude oil began to fall in price after the statement of Saudi's Minister of Energy Khalid Al-Falih about Saudi Arabia as the world's largest oil exporter.

WTI crude oil futures contracts for December delivery traded on the New York Commodity Exchange (COMEX) fell 0.16% to settle at $69.25 a barrel. Brent crude futures contracts traded on the London Intercontinental Exchange (ICE) fell 0.3% to $79.62 a barrel.

Saudi Arabia will not take the same measures and will not repeat a 1973-style oil embargo. "There is no intention," Khalid al-Falih said. Instead of limiting the supply of black gold, Saudi Arabia is ready to take all possible actions to increase oil supplies.

Analysts of the largest investment bank J.P. Morgan said that the US oil sanctions against Iran as well as the situation surrounding the killing of Saudi journalist Jamal Khashoggi triggered serious changes in crude oil market. They also emphasized the significant role of geopolitics in the oil market, which, in its turn, affected the cost of oil and its volatility.

Besides, J.P. Morgan raised its 2019 oil prices outlook. The upgraded price forecast for Brent crude oil made up $83.5 per barrel. According to the management of the Bank of America, the continuation of the period of generally rising prices in the crude oil market is explained by the US sanctions on Iran and by a decrease in reserve capacity.