Saudi Arabia not confirming Trump's 2M barrels

Saudi Arabia not confirming Trump's 2M barrels

"It is becoming increasingly clear that Saudi Arabia and Russian Federation will struggle to compensate for potential losses in oil production from the likes of Venezuela, Iran and Libya", said Abhishek Kumar, analyst at Interfax Energy in London.

President Donald Trump said Saturday that he has asked Saudi King Salman to increase oil production to help ease pressure on rising gasoline prices, which have threatened to stifle economics benefits for Americans from the Republican tax cut.

There was no immediate acknowledgment from the Saudi Royal Court that the conversation took place.

Oil prices have edged higher in recent months, as the Trump administration has pushed allies to end all purchases of oil from Iran following the U.S. pulling out of the nuclear deal between Tehran and world powers, with ongoing unrest in Venezuela, as well as with fighting in Libya over control of that country's oil infrastructure.

Later on Saturday, the official Saudi Press Agency (SPA) said King Salman had spoken to Trump on the need to maintain oil market stability and global economic growth, but gave no further details about an output rise. They also spoke about the efforts of producing countries to compensate for any potential shortage of supply, the statement said.

The U.S. government wants to stop Tehran exporting oil to cut off a vital supply of finance, and hopes other big oil producers in the Organization of the Petroleum Exporting Countries and Russian Federation will make up for the deficit. It did not elaborate.

The United States has been seeking to convince countries to halt imports of Iranian oil from November, when Washington will re-impose sanctions after pulling out of the deal aimed at halting Iran's nuclear ambitions.

Benchmark Brent crude was trading around $79 a barrel on Friday, and a Reuters poll showed prices look to remain strong for the rest of this year due to supply disruptions in countries including Libya and Venezuela and as the extra oil from OPEC fails to meet rising demand.

Iran is the fifth-largest oil producer in the world, pumping about 4.7 million barrels per day (bpd), or nearly 5 per cent of total output, much of it to China and other energy-hungry nations such as India. That was after Saudi Energy Minister Khalid al-Falih said the kingdom would honour the OPEC decision to stick to a one-million-barrel increase.

Uruguay: Cavani injury a ‘worry’; France ‘won’t be easy’
Portugal were level as from a short corner worked to Raphael Guerreiro in the 55th minute as Ronaldo took Godin away. They carry a huge burden on their shoulders, yet each scored crucial goals in the Group stage.

Iran's OPEC governor, Hossein Kazempour Ardebili, accused the United States and Saudi Arabia of trying to push up oil prices and said both countries are acting against the foundation of OPEC.

Saudis are used to US requests for oil.

"There is also some analysis from energy sector experts who say that Saudi Arabia could perhaps increase its daily output but it would only be for a very short time and the quality of the oil produced would be very low amd very hard to refine".

Global oil prices, which ranged from between 40 dollars to 50 dollars a barrel in 2016, increased to about 50 to 60 dollars in 2017, and continued upward to 80 dollars in 2018.

But destabilizing OPEC could throw global oil markets into even greater turmoil than they've seen since Trump's election.

Saudi Arabia has the capacity to pump a maximum of 12.04 million bpd, according to the International Energy Agency.

"The market will go up to $100 I am sure as Saudi Arabia said they will plan an increase for July".

China, the world's top crude oil buyer, imported around 655,000 barrels a day on average from Iran in the first quarter of this year, according to official Chinese customs data, equivalent to more than a quarter of Iran's total exports.

The US state department has claimed that it expects the "vast majority" of world nations will comply with Washington's demand to boycott Iran's oil.

Related Articles