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Saudi Arabia gives assurances on supply as oil hits $80 per barrel

Reuters  |  NEW DELHI 

By and Rania El Gamal

NEW DELHI (Reuters) - said on Thursday it would make sure the world is adequately supplied with to support global economic growth just as top consumer expressed frustration with prices hitting $80 per barrel for the first time since 2014.

OPEC's most influential minister, Saudi Arabia's Khalid al Falih, called India's to assure him that supporting global economic growth was "one of the kingdom's key goals", the Saudi ministry said in a statement.

"He (Falih) reiterated his commitment towards market stability and that the Kingdom together with other producers will ensure availability of adequate supplies to offset any potential shortfalls," the statement said.

The statement came as prices rose back to $80 per barrel for the first time since 2014 due to rising concerns over disruptions to Iranian because of new U.S. sanctions and due to plummeting output in

Both the Saudi and Indian ministries said Pradhan expressed concern about escalating prices and the impact it has on consumers and especially on the Indian economy, the world's third largest

"I expressed my concern about rising prices of and its negative impact on consumers and the Indian economy and reiterated the need for stable and moderate prices," Pradhan said in a statement.

The statements said Falih briefed Pradhan on his consultations with producing countries both in and outside of OPEC, including

is one of the world's fastest growing consumers and its only lags behind the and

OPEC and its ally have cut their output since January 2017 to help reduce excessive global stockpiles.

So far OPEC has said it saw no need to ease output restrictions despite global stocks falling to its desired levels and despite consuming nations voicing concerns the price rally might have gone too far and could lead to demand destruction.

OPEC member the said on Thursday OPEC had bigger issues to consider than the impact of the U.S. decision to withdraw from the international nuclear deal with such as Venezuela's collapsing output.

U.S. has also called on OPEC to help cool saying they were artificially high and that it was "unacceptable".

(Reporting by and Rania El Gamal; writing by Dmitry Zhdannikov; Editing by Alexandra Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 18 2018. 00:53 IST