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U.S. President Donald Trump said on June 30 that King Salman had accepted his request to increase oil production "perhaps up to 2,000,000 barrels", an extraordinary sum unconfirmed by the kingdom and that would push the leader of OPEC to an unprecedented level of production. In an early morning tweet, Trump said the increase in production in Saudi Arabia would help offset the decline in the Iranian supply, after the United States withdrew from the US. Iran's nuclear deal in May and reimposed oil sanctions. "I just spoke to King Salman of Saudi Arabia and explained to him that because of turmoil and disorder in Iran and Venezuela, I ask Saudi Arabia to increase production oil, maybe up to 2,000,000 barrels.The prices are high! He agreed! "Trump tweeted
He did not specify if the figure was barrels per day (bbl / d ), the normal measure for oil production.
Saudi Arabia is the world's largest oil exporter and the largest producer in the country.
A week ago, OPEC and its allies, including Russia, agreed to beef up their supplies, reducing the brakes put in place since the beginning of 2017. They said how many of them were there. additional supply they would add
Reported additional volume is likely to be in the range of 700,000 b / d to 1 Mb / d. A request from Trump for 2MMbbl / d plus would be at least double expectations of the market.
Saudi state media reported that during the appeal, the Saudi King and Trump stressed the need to preserve the stability of the oil market and the efforts of the oil producing countries.
The statement reported by the Saudi media does not mention any intention of Saudi Arabia to increase its production by 2 Mb / d.
Saudi Arabia has a maximum sustainable capacity of 12 Mb / d, but it has never tested this level of production.
Brent Brent crude traded around $ 79 / bbl on June 29th. and a Reuters poll showed that prices are expected to remain solid for the rest of the year due to supply disruptions in countries such as Libya and Venezuela and that additional oil from the United States is expected. OPEC would not respond to the request.
/ d, the highest in its history, up 10.8 million in June, a source familiar with Saudi production plans told Reuters this week.
It was unclear to what level of production Trump was referring.
"We will be in unexplored territory, while Saudi Arabia has the capacity in theory, it takes time and money to put these barrels online, up to a year said Amrita Sen of the Energy Aspects consulting firm. Minister Khalid al-Falih met with US Secretary of State Mike Pompeo in Washington on June 28 to discuss energy security
The Trump administration is pushing countries to cut all Iranian oil imports to from November when the United States will reimpose sanctions against Tehran. agreed between Iran and six major powers, qualifying a "defective" agreement.
This agreement was aimed at reducing Tehran's nuclear capabilities in exchange for the lifting of certain sanctions. Trump ordered the reimposition of US sanctions against Iran that were suspended under the agreement.
U.S. Officials urge their allies in Europe, Asia and the Middle East to adhere to sanctions, which aim to put pressure on Iran to negotiate a follow-up agreement to stop its programs. nuclear.
working with countries on a case-by-case basis to help them reduce Iranian oil imports and suggest certain exemptions.
Iran's Supreme Leader, Ayatollah Ali Khamenei, on June 30 accused Washington of trying to return the Iranians against their government.
"They are exerting economic pressure to separate the nation from the system … but six US presidents before it have tried and had to give up," Khamenei said Saturday, quoted by his website Khamenei.ir, referring [19659002] The Iranian rial has lost up to 40% of its value since last month, when Trump has withdrawn from the nuclear deal
The Iranian governor of OPEC, Hossein Kazempour Ardebili, accused the United States and Saudi Arabia "If this happens, [it] means that Trump asks Saudi Arabia to march [away] from OPEC", was he told Reuters. 19659002] "The market will go up to $ 100. I am sure that Saudi Arabia has announced that it is planning an increase for July. […] Kuwait planned to increase production 85,000 bpd of oil as of July 1, as part of an agreement between OPEC and non-OPEC countries. OPEC producers are increasing their production of 1 Mb / d, said the Minister of Energy, Bakhit al-Rashidi, June 30.
"Kuwait will increase its oil production to 2,785 Mb / d, up 85,000 from based on last week's production cut agreement, "Rashidi told the Arabic-language daily Al-Rai
.
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