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President Donald Trump said Saturday that the crude oil producer in Saudi Arabia had agreed to increase its output by 2 million barrels a day.
On Twitter, Trump said his talks with the Saudis were centered on need. reduce crude oil production to counter the expected production disruptions of major Iranian and Venezuelan producers.
The tweet said: "I just spoke to King Salman of Saudi Arabia and I explained to him that in Iran and Venezuela, because of the turmoil and dysfunction [sic] I ask Saudi Arabia to increase its oil production up to 2,000,000 barrels, to make up the difference … Prices are high! He agreed! "(See tweet below) [19659004] I just spoke to King Salman of Saudi Arabia and explained to him that because of the turmoil and disorder in Iran and Venezuela, I ask Saudi Arabia to 2,000,000 barrels, to make up the difference … Prices are high!
– Donald J. Trump (@realDonaldTrump) June 30, 2018
The President blamed the Organization of the Petroleum Exporting Countries for a recent price hike that he has in the past said: " will not be accepted ."
OPEC has partnered with Russia and other major producers to limit production, an effort that helped bring crude back to the end of 2014.
On Friday, West Texas Intermediate crude was traded on the New York Mercantile Exchange for delivery in August
CLQ8, + 1.09%
the international benchmark, closed 1%. First quarter contract prices reached just over 8% over the week, recorded a monthly gain of nearly 11% and increased by more than 14% in the second quarter, rebounding by almost 23% in the first quarter. first semester compiled by WSJ Market Data Group and FactSet data.
By comparison, the Dow Jones Industrial Average
DJIA, + 0.23%
fell 1.3% last week, 0.6% in June, and posted a gain of 0.7% in the second quarter, but decreased by 1.8% so far this year. The S & P 500 index
SPX, + 0.08%
posted a similar weekly decline, adding 0.5% in June, rising 2.9% in the second quarter and gaining 1.7% in the first half .
The decision of the Trump administration to withdraw from a 2015 nuclear deal with Iran and reimpose sanctions on the country and limit production was further amplified. The political turmoil in Venezuela, a major producer of crude oil, is also contributing to higher prices.
