President Donald Trump said he asked Saudi King Salman to increase oil production. He asked for the increased oil production to make up the “turmoil & dysfunction in Iran and Venezuela”.
The U.S. President Trump said in a tweet that the Saudi King has agreed to his request for the increased 2,000,000 barrels of oil production.
For the first time since 2014, due to the 13% surge in oil prices in the global oil market, crude rose around $74 a barrel.
President Donald Trump tweeted: “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.”
The White House seems to have quite a different interpretation of the call with King Salman than Trump. #OOTT #OPEC | @WhiteHouse read-out below and update story here: https://t.co/ti8DKirCJF pic.twitter.com/vyTY4Yiaxo
— Javier Blas (@JavierBlas) July 1, 2018
Without specifying any timeframe, Donald Trump added in the tweet, “prices to [sic] high! He has agreed!”
The Saudi News Agency SPA said later on Saturday that King Salman had spoken to President Trump about “efforts to maintain the stability of oil markets” without detailing of any increased output as Trump said.
Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction 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…Prices to high! He has agreed!
— Donald J. Trump (@realDonaldTrump) June 30, 2018
The SPA statement added: “During the call, the two leaders stressed the need to make efforts to maintain the stability of oil markets and the growth of the global economy.”
The SPA statement also added that the leaders discussed “efforts by the oil-producing countries to compensate for any potential shortage in supplies.”
Meanwhile, Iran’s Supreme Leader Ayatollah Khamenei said the U.S. is trying to turn Iranians against the regime.
PRESIDENT TRUMP has asked Saudi Arabia’s King Salman to raise oil production by as much as 2 million b/d to lower oil prices and the king has reportedly agreed. If this happens will significantly increase oil supplies but leave the market with essentially zero spare capacity
— John Kemp (@JKempEnergy) June 30, 2018
Ayatollah Khamenei said: “They bring to bear economic pressure to separate the nation from the system… but six US presidents before him tried this and had to give up.”
After the U.S. President announced that the U.S. would pull out of Iran deal, Iran’s rial, ever since, has lost up to 40% of its value.
President #Trump has just killed the idea of “energy dominance“ by asking the King Salman of Saudi Arabia to increase oil production!
He also showed the world who is the “swing producer”.
But 2 mb/d? Something is cooking! pic.twitter.com/mcB9Ld8Ibk
— Anas Alhajji (@anasalhajji) June 30, 2018
Hossein Kazempour Ardebili, the OPEC governor of Iran has accused the U.S. and Saudi Arabia of trying to push up oil prices.
Ardebili said: “The market will go up to $100 I am sure as Saudi Arabia said they will plan an increase for July … This was managed between the two to rob the pocket of rest of the world.”
He accused the countries of acting against the foundation of OPEC. Ardebili said, “If this happens, it means Trump is asking Saudi Arabia to walk away from OPEC,” Reuter quoted Ardebili.