OPEC equation may change as Saudis signal to replace Iranian oil loss

For the past 16 months, the Organization of Petroleum Exporting Countries, Russia and other allies have been constraining output to eliminate a global glut.

The international nuclear agreement with Iran might not be the only deal U.S. President Donald Trump has unravelled.

On Monday, Saudi Arabian Energy Minister Khalid Al-Falih was repeating his mantra that production cuts by OPEC and its allies must keep going. Within 48 hours, the kingdom had raised the prospect of increasing output.

Between the two pronouncements came Trump’s decision to scrap the nuclear accord with Iran, re-imposing sanctions on the world’s fifth-biggest oil exporter.

"The Iranian sanctions may change the OPEC June meeting completely,” said Amrita Sen, chief oil analyst at consultants Energy Aspects Ltd. in London. “It’s no longer about extending