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U.S. The administration of President Donald Trump rectified a statement he had made earlier indicating that he was persuading Saudi Arabia to effectively boost oil production to its maximum capacity, which would have threatened to blow up a fragile truce approved by the OPEC and ignited the Saudi-Iranian rivalry.
"I just spoke to King Salman of Saudi Arabia and explained to him that because of the unrest and malfunctions in Iran and Venezuela, I ask Saudi Arabia to go to Saudi Arabia. increase its oil production, perhaps up to 2,000,000 barrels. (sic) high! But, in a statement Saturday night, the White House said that King Salman bin Abdulaziz baderted that the Saudi Arabia has 2 million barrels per day of reserve production capacity "which it will use cautiously if necessary to ensure balance and stability of the market, and in coordination with its producing partners, to respond to any eventuality. "
The White House statement aligned with that of the state-run news agency Saudi Press Agency, in a phone call on Saturday, discussed efforts by oil-producing countries to offset potential shortages in the oil patch. The two leaders stressed the importance of maintaining the stability of the oil market, according to the report.The agency did not say that the leaders were in agreement and has made no reference to 2 million barrels.
Iranian Oil Minister Bijan Namdar Zanganeh said any increase in production exceeding the limits agreed by OPEC would violate oil prices. a letter that he sent to the OPEC President, Suhail Al Mazrouei, and distributed by the press service of the Iranian Ministry of Petroleum, Shana.The OPEC should reject the appeal. American to an increase in production " politically motivated against Iran, "he said.
The central office is another sign of improving US-Saudi relations over the Obama administration. Kingdom seeking a nuclear deal with Iran. Trump last year chose Saudi Arabia for his first trip abroad. Since then, both governments have announced hundreds of billions of dollars worth of contracts, with Trump bragging openly about the number of US jobs the Saudis were helping to create.
Iranian Answer
Had the Saudis accepted Trump's request, "This means that he is calling them to leave the OPEC," said OPPE Governor Hossein Kazempour. Ardebili, in an interview. "A country can in no case exceed its production quota by 2 million barrels unless it leaves OPEC."
At a meeting of the Organization of Petroleum Exporting Countries in Vienna last weekend, Saudi Arabia's Minister of Energy, Khalid Al-Falih, said the group 's action would add nearly one million barrels a day to setting up the program.
Brent Brut, the world benchmark for oil, reached $ 80 a barrel in mid-May, its highest level since November 2014. It closed Friday at $ 79.44 a barrel. Retail prices for unleaded gasoline, including taxes, averaged $ 2,833 per gallon for the week ended June 25, according to the nation 's Energy Information Administration. This represents an increase of about 55 cents over the same period last year, at a time when the Trump Republican Party is trying to retain its majorities in Congress in mid-term elections in November [19659010] Spare Capacity
request, this would extend the reserve production capacity to the limit, which means that any supply breakdown could have a significant effect on oil prices. This could also aggravate other OPEC members, such as Iran and Venezuela, who initially sought to prevent any increase while OPEC, along with Russian-led allies, was going to their meetings in Vienna at the beginning of the month
. Said Amrita Sen, chief oil badyst at Energy Aspects Ltd. in London. "While Saudi Arabia has the capability in theory, it takes time and money to put these guns online, up to a year," she said. Saudi Arabia has the ability to pump a maximum of 12.04 million barrels a day. at the International Energy Agency. The kingdom pumped a little over 10 million barrels a day in May.
However, oil badysts and consultants believe that the kingdom can produce more than 12 million barrels a day in a crisis. beyond what the engineers consider a reasonable rate. In addition, Saudi Arabia shares with Kuwait a so-called neutral zone that has not been used in the last two years and allows pumping as much as 500,000 additional barrels per day.
& # 39; Ramp Up & # 39;
"Saudi Arabia may use some of its stocks to boost exports, visible to the US President, while it takes time to increase the operating capacity," said Olivier Jakob, head of the Swiss consultant Petromatrix GmbH
The OPEC for oil prices being too high, repeating the comments that he made on Twitter in April.In meetings held in Vienna on 22 and June 23, OPEC and its allies concocted a delicate deal to satisfy some producers, like Iran and Venezuela, who wanted to limit production, and others like the Saudis, who were looking to
The curbs were designed to help drain an overall glut of oil, a goal that has been largely achieved, although supply disruptions are now putting pressure on prices. full economic crisis, which brought down oil production. In Libya, where a dispute over the control of major ports has hindered production, the Arabian Gulf Oil Co. on Saturday arrested 220,000 barrels a day of production, according to a person familiar with the shutdown.
See also: Unexpected oil losses The rise of Saudi production
The Trump administration in early May said that it would renew US sanctions against Iran and that She was looking to reduce the purchases of other foreign buyers of Iranian oil
"I guess the Saudis want Go very hard on Iran," tweeted the most trendy bull of the oil market , Pierre Andurand, hedge fund manager. "It seems that the Iranian regime change is the number one priority for the Saudis."
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