While publicly Saudi Arabia may not like Iran's warning that the Kingdom should not make up for lost Tehran oil production, privately the Kingdom won't mind as that keeps oil prices well above their budget target of USD90.
For now Saudi Arabia is pumping oil at historically high levels, as Iranian exports drop. U.K.‐based Oil Movements forecasts that sailings from the Middle East may rise 300,000 barrels per day (bpd) above December levels.
The Iran issue could keep crude prices near or above three figures, despite a warning by the International Energy Agency that global oil demand is set to be at its lowest level since 2009.
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