Trump claims Saudi Arabia will boost oil production

Adjust Comment Print

Last week, OPEC countries and other major oil producers that participate in the 2016 Vienna cut deal agreed during a meeting in the Austrian capital to increase production to 1 million barrels per day, that is the volume of the countries' overcompliance with the agreement.

In a morning tweet from his private golf club in Bedminster, N.J., Trump said he made the request during a conversation with Salman, citing the "turmoil" and dysfunction in Venezuela and Iran for driving up prices at the pump.

Iran opposed any changes to the original production-cut deal at a time when its oil industry is facing renewed sanctions over Trump's decision to quit the global nuclear deal with Tehran.

The average per-gallon price for gasoline in the United States was $2.85, a jump of 63 cents from a year ago, according to AAA.

Trump's aim may be to exert maximum pressure on Iran while at the same time not upsetting potential U.S. midterm voters with higher gas prices, said Antoine Halff, a Columbia University researcher and former chief oil analyst for the International Energy Agency.

The telephonic call between Trump and King Salman on Friday assumes significance in view of the increasing global oil prices, and United States asking countries to stop purchasing oil from Iran, which is a major supplier of oil to countries across the globe including India and China.

The statement reported by Saudi media did not mention any intention by Saudi Arabia to raise production by 2 million barrels per day.

This comes barely days after the United States has asked countries to cut all oil imports from Iran by the start of November or else face powerful U.S. sanctions.

Joe Jackson Passed Away at 89
Last week it was reported that Joe Jackson was hospitalized in Las Vegas due to effects of terminal pancreatic cancer. In his 1985 autobiography "Moonwalk", Michael Jackson wrote , "We'd perform for him and he'd critique us".

Active oil rig use is easing - down for a second week last week to 858, a fall of 4.

Iran's OPEC governor, Hossein Kazempour Ardebili, accused the United States and Saudi Arabia of trying to push up oil prices and said both countries are acting against the foundation of OPEC. "He has agreed!", Trump said on Twitter Saturday. "It is expensive", a Saudi official told the paper. Saudi Energy Minister Khalid Al-Falih indicated the group's action would add almost one million barrels a day to the market.

The impact of rising gas prices in offsetting the pocketbook benefits of the tax cuts approved by Congress in December could dampen public enthusiasm over the economy ahead of the midterm elections.

Though the OPEC didn't disclose country quotas in the recent announcement of 1bpd output hike, Bell sees there are a few countries with available capacity to raise production and any increase in production would be borne most significantly by Saudi Arabia, the UAE and Kuwait.

Benchmark Brent crude was trading around $79 a barrel on Friday. Trump ordered the re-imposition of USA sanctions against Iran that were suspended under the accord.

"I guess the Saudis want to give the confidence to Trump to go very hardcore on Iran", tweeted the oil market's most vocal bull, commodities hedge-fund manager Pierre Andurand.

Saudi Arabia plans to pump up to 11 million bpd in July, and Russian Federation has said it could increase output by more than 200,000 bpd.

Comments