Saudis replace Iranian supply in world market

Saudi Arabia, which currently produces 10 million barrels a day, has promised the Europeans to fill the gap in case they implement their new set of oil embargos against Iran from July. Speaking in an interview with press tv, Qassemi said the current level of "Saudi production may be temporary, and it definitely cannot continue." "We have always asked that the production ceiling (of OPEC)...be maintained," he said. OPEC is producing more than one million barrels a day above a ceiling of 30 million barrels a day agreed in December, an overproduction largely tied to the Saudi output increase. At the December gathering, Qassemi met his Saudi counterpart Ali al-Naimi and said he was told Saudi Arabia wasn't trying to take Iran's share of the oil market. Saudi Arabia still denies its increasing production to replace Iran. But Qassemi said "the latest policy of Saudi Arabia (has) turned out otherwise." Saudi Arabia's high production is set to continue after the US and the European Union have ruled out easing sanctions on Iran even after talks between Iran and major powers Sunday - the first in over a year - ended with a pledge to pursue discussions next month, interrupting months of steadily escalating tensions between both sides.