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US President Donald Trump said Saturday that King Salman of Saudi Arabia had acceded to his demand for increased oil production a week after that. OPEC has announced an increase in production.
"I just spoke to King Salman of Saudi Arabia and explained to him that because of the turmoil and malfunctions in Iran and Venezuela, I ask Saudi Arabia to increase the production of oil, perhaps up to 2,000,000 barrels, to make up the difference, "said Mr. Trump in an early morning tweet.
" Prices are too high!
L & # Saudi News Agency said Trump had called on King Salman and both stressed "the need to make efforts to preserve the stability of the oil market and the growth of the world economy." [19659003] Saudi Arabia is the world's largest oil exporter and has generally kept at least 1.5 to 2 million barrels a day of unused capacity, according to
Simply Not Doable [19659003] But oil officials quoted by Wall Street Journa l have said that it is arguable that the kingdom can increase the production of the amount suggested by Trump.
"This is simply not feasible," said a senior Saudi oil official quoted by the Journal.
million. Trump has repeatedly blasted OPEC on Twitter in recent months, putting pressure on Riyadh on a Monday, his latest comments coming a week after the ministers of the Organization of Petroleum Exporting Countries – which is the only one in the world. Saudi Arabia is the main member –
On 23 June, Russia, a non-OPEC member, also supported this effort, marking the beginning of a week of tense diplomacy for the group that avoided a damaging disagreement between Iran and Saudi Arabia
. The ministers announced that they would increase oil production by about one million barrels a day from July.
"I think this will contribute significantly to meeting the additional demand of the second half of the year", Khalid al-Faleh
An Agreement to Save the Face
Talks focused on the opportunity to amend an 18-month supply reduction agreement between OPEC members and allied countries, including Russia, which clearly has Saudi Arabia, backed by Russia's non-member, argued that the unprecedented supply-reduction pact pushed crude prices from less than $ 30 per barrel in early 2016 to about $ 70
. Iran is opposed to any modification of the original production-cut agreement at a time when its oil industry is facing a revival of production, while the United States, the United States, is not the only country in the world. India and China increase. the sanctions on Trump's decision to leave the international nuclear agreement with Tehran.
In the end, both parties were able to save face.
The current production pact calls on participating countries to reduce their production by 1.8 million barrels a day.
But production constraints and geopolitical factors have seen several nations exceed their restraint quotas, keeping about 2.8 million barrels in the market, according to OPEC.
In agreeing to collectively increase Iran accused Trump of trying to politicize OPEC and said that it is the US sanctions against Iran and the United States. Venezuela who helped to raise the voices of OPEC. According to the OPEC, Saudi Arabia was producing about 10 million barrels of crude per day in May
(with the exception of the title, this story was not edited by NDTV staff and is published syndicated feed.)
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