WASHINGTON/BERKELEY HEIGHTS: U.S. President Donald Trump said in a tweet on Saturday that Saudi Arabia’s King Salman had agreed to his request to increase oil production “maybe up to 2,000,000 barrels” to offset production from Iran and Venezuela.
The world’s top oil exporter plans to pump as much as 11 million barrels of oil per day (bpd) in July, an oil industry source told Reuters this week, after OPEC agreed with Russia and other oil producers to raise output by about 1 million bpd.
Trump tweeted: “Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil and 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 … Prices too high! He has agreed!”
The Trump administration is pushing countries to cut all imports of Iranian oil from November when the United States re-imposes sanctions against Tehran, after Trump withdrew from a 2015 nuclear deal agreed between Iran and six major powers, calling it a “defective” agreement.
That agreement sought to curb Tehran’s nuclear capabilities in exchange for the lifting of some sanctions. Trump ordered the re-imposition of U.S. sanctions against Iran that were suspended under the accord.
U.S. officials are pressing allies in Europe, Asia and the Middle East to adhere to the sanctions, which are aimed at pressuring Iran to negotiate a follow-up agreement to halt its nuclear programs.
State Department officials said this week the United States is prepared to work with countries on a case-by-case basis to help them reduce imports of Iranian oil.
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.
Oil analysts said OPEC producers may not be able to fully supply the market if Iranian oil is cut from the market.
Saudi Arabia not confirming Trump’s 2M barrels
Saudi Arabia says that King Salman has spoken to President Donald Trump, but gave no mention of the 2 million barrels of extra production the American leader tweeted about earlier in the day.
A statement on the state-run Saudi Press Agency on Saturday afternoon said, “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.”
It added that there also was an understanding that oil-producing countries would need “to compensate for any potential shortage of supplies.” It did not elaborate.
The OPEC cartel recently agreed to pump 1 million barrels more crude oil per day. Trump’s claim of a 2-million-barrel increase for Saudi Arabia alone does not specify a timeframe.
There was no immediate acknowledgement from the Saudi Royal Court that the conversation took place. Officials didn’t immediately respond to a request for comment.
