President Trump gets Saudi Arabia to increase oil production

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On Saturday, Trump said that he spoke to the Saudi king about the need to increase Saudi Arabia's oil production "maybe up to 2,000,000 barrels" due to unstable situation in Iran and Venezuela, stressing that the Saudi leader agreed with the proposal.

Trump wrote on Twitter that he had asked the king in a phone call to boost oil production "to make up the difference.Prices to (sic) high!"

The Saudi government said on its official website that the two leaders had spoken about oil production, but avoided suggesting any specific deal had been struck.

Iran now exports around 2.4 million barrels a day of crude of which a million barrels or so could be at risk. Russian Federation could also add as much as 400,000 barrels a day, analysts say.

In this scenario, Saudi Arabia, the UAE, Kuwait and Iraq are the main countries that have the capacity to increase production, she said.

At least one Japanese refiner has been assessing U.S. Mars crude as a potential replacement for Iranian crude as the company plans to cut Iran loadings after September as U.S. sanctions are reinstated, said a source with knowledge of the matter.

Saudi authorities had no immediate comment. He questioned whether Trump's words would do anything to reverse the effects on the market of declining Iranian oil production. Its record is 10.72 million barrels a day.

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FGE, an energy consultancy, said in its June newsletter that the USA is determined to "push Iran's exports to zero".

Trump implied on Twitter that he had asked the king in a phone call to increase oil production in hopes of greater supply bringing costs down in the United States, writing 'Prices [are too] high!' He questioned whether Trump's words would do anything to reverse the effects on the market of declining Iranian oil production.

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. "The re-imposition of sanctions on Iran may have been factored into the rapid increase in oil prices in recent months", Iradian added.

At a meeting of the Organization of Petroleum Exporting Countries in Vienna, Saudi Arabia-the group's largest producer-joined other members in agreeing to scale back its over-compliance with output cuts that have been in place since the beginning of 2017.

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.

'Saudi Arabia obviously can deliver as much as the market would need, but we're going to be respectful of the 1-million-barrel cap - and at the same time be respectful of allocating some of that to countries that deliver it, ' al-Falih said on Mpnday, prior to Trump's tweet. "This was managed between the two to rob the pocket of rest of the world".

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