Saudi Arabia’s King Salman agrees upon US President Donald Trump’s request regarding an increase in the production of oil on Saturday. The agreement happened a week after OPEC already announced an output rise.
Though official of Saudi Press Agency has confirmed a phone call between Saudi Arabia’s King Salman and US President Donald Trump regarding boosting up oil production there were no specifics as such.
“Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & dysfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference,” Mr. Trump announced in an early morning tweet.
“Prices too high! He has agreed!”
Regarding this one of the officials in the Saudi Press Agency clarified that Mr. Trump had called King Salman and the two highlighted “the necessity of doing efforts in order to preserve the stability of the oil market and the global economic growth.”
They also discussed “efforts of the producing countries to cover any possible shortage in supplies,” the official further added in its brief report.
Being the biggest oil exporter in the world, Saudi Arabia has a production of 1.5 million to two million barrels per day of spare capacity. These figures are the latest figures according to the United States Energy Information Administration.
From a couple of months, US President Donald Trump has continuously made pressure on OPEC to increase the barrel output of the oil per day, as Mr. Trump is looking forward to lower pump prices before midterm congressional elections in November by increasing the production of the oil.
Regarding this, even the ministers have announced that from July onwards they would look upon to boost up oil production by around one million barrels per day.
“I think it will contribute significantly to meet the extra demand that we see coming in the second half,” Saudi Energy Minister Khalid al-Faleh told reporters at the time.
This kind of talks and statements from the minister’s forces to think to modify an 18-month-old supply-cut deal between OPEC members and allied countries, including Russia.
This unparalleled supply-cut pact has previously in 2016 lifted crude prices from below $30 a barrel to around $70.
Regarding this Saudi Arabia, being in favor of increasing oil production had argued strongly as complaints of this commodity’s higher prices have been increased in major consumer countries like the United States, India, and China.
While changes regarding 18-month-old supply-cut deal had made Iran oppose for the same. In the end, both sides were able to save face.
Member countries by simply agreeing to relatively increase the oil production to million barrels per day are following with the deal that struck in late 2016.
Besides all these conversations and statements Iran has blamed US President Donald Trump for pressurizing OPEC’s to increase the barrel production of oil to achieve some political goals.