Trump pressures Saudi Arabia to increase oil production

Zanganeh

Zanganeh

"Kuwait will raise its oil production from tomorrow to 2.785 million barrels, a daily increase of 85,000 compared to May, based on last week's production cut agreement", Rashidi told Arabic-language daily Al-Rai.

Brent crude, the worldwide benchmark, was selling Friday for over $79 a barrel, and there is talk that in certain circumstances a return to $100 a barrel oil is possible.

This comes barely days after the United States has asked countries to cut all oil imports from Iran by the start of November or else face powerful USA sanctions.

At the same time, factional fighting in Libya is causing a large outage, while the oil output of Venezuela, once a major producer, has fallen by around 1 million barrels a day over the last two years, with further steep declines possible in the coming months.

Iran opposed any changes to the original production-cut deal at a time when its oil industry is facing renewed sanctions over Trump's decision to quit the worldwide nuclear deal with Tehran.

"Once you get above that level, we are into uncharted territory", said David Fyfe, chief economist at the Gunvor Group, a major trading house.

USA retail unleaded gasoline prices, including taxes, averaged $2.833 a gallon for the week ended 25 June, according to the nation's Energy Information Administration.

JXTG Holdings recently bought 2 million barrels of West Texas Intermediate crude for arrival by September, according to three industry sources.

"However, there are only a few oil exporters who agreed on production cuts in early 2017 with significant spare capacity to increase output".

More news: 9 injured in mass stabbing at Idaho apartment complex
More news: Lewis Hamilton expects F1 title boost from Mercedes upgrades in Austria
More news: Suarez vs. Ronaldo subplot of Uruguay-Portugal Round of 16 showdown

"If this happens, (it) means Trump is asking Saudi Arabia to walk (away) from OPEC", he told Reuters.

Iranian exports have been running around 2.4 million barrels a day, according to the International Energy Agency.

'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. Saudi Energy Minister Khalid Al-Falih indicated the group's action would add almost one million barrels a day to the market.

Iran has accused Trump of trying to politicize OPEC and said it was United States sanctions on Iran and Venezuela that had helped push up prices. But broadcasting its requests on Twitter with a number that stretches credibility opens a new chapter in US-Saudi relations, Halff said.

Analysts said the outcome of the discussions between the Saudi and United States leaders may have far reaching benefits for both sides. "I think the difficulty for them is to distinguish what is a real ask from what is public posturing".

Besides the looming USA sanctions against Iran, which is fueling the rally in Brent futures, and the outage in Canada, which is supporting WTI crude, both markets are also benefitting from supply issues in Venezuela and Libya.

South Korea accounted for 14 percent of Iran's oil exports previous year, according to the US Energy Department.

On June 26, a senior State Department official said the United States wants to stop all exports of Iranian oil from November and is unlikely to offer any exemptions as it did during previous sanctions.

The State Department has said it expects the "vast majority" of countries will comply with the U.S. request.

Recommended News

  • This Note 9 preview spills Samsung’s biggest changes

    This Note 9 preview spills Samsung’s biggest changes

    Xiaomi's first Android One smartphone, the Mi A1 is receiving an OTA update for the latest version of Android , version 8.1 Oreo. You can expect the same IP68 water resistance, fast wireless charging and stereo speakers from the current S9 series.
    Suarez: Uruguay focused on Portugal and Ronaldo

    Suarez: Uruguay focused on Portugal and Ronaldo

    Against Cavani, he has played four matches in the Champions League, scoring three goals, compared to one from the Uruguayan. When he's on top of his game, he's the leader of that team", Tabarez said in his pre-match press conference on Friday.
    Gareth Southgate makes tournament strategy revelation ahead of England vs Colombia

    Gareth Southgate makes tournament strategy revelation ahead of England vs Colombia

    Southgate felt England were slightly unfortunate not to escape with a point against Belgium . "He totally understood 100% that the team is first".
  • Sergio Ramos left in tears after Spain crash out of World Cup

    The Spanish players are incensed that they haven't been awarded a penalty kick for what they perceived to be a foul in the box. Incredible! Akinfeev has saved Koke's spot kick! In the fifth round, Iago Aspas needed to convert his try to keep Spain alive.
    Amazon’s new program to help entrepreneurs set up their own delivery business

    Amazon’s new program to help entrepreneurs set up their own delivery business

    If they are approved to join the program, Amazon says those businesses can continue to deliver packages for other companies. Amazon's new "Delivery Service Partners" and their staff members won't be employed by the tech company.
    Bolton Holds Talks With Putin In Moscow

    Bolton Holds Talks With Putin In Moscow

    He said Putin's meeting with Bolton would be used to discuss "the sad state" of bilateral relations as well as top global issues. According to the Security Adviser, the face-to-face meeting will improve relations between the two nations.
  • LeBron James to sign 4-year, $154 million deal with the Lakers

    LeBron James to sign 4-year, $154 million deal with the Lakers

    Westgate Las Vegas Resort & Casino gives the Lakers the second-best odds to win next year's National Basketball Association title. It appears that James chose the Lakers over the Cleveland Cavaliers , although the Philadelphia 76ers did make a push late.
    Pompeo: N. Korea understands scope of U.S.  request for denuclearization

    Pompeo: N. Korea understands scope of U.S. request for denuclearization

    Last week, the USA military said it moved 100 wooden coffins to the border between North and South Korea in preparation.
    Mavericks tap brakes on inevitable Dirk-Doncic comparisons

    Mavericks tap brakes on inevitable Dirk-Doncic comparisons

    But, as expected , it was announced that he'll be traded to the Dallas Mavericks for Trae Young , who will be sent to Atlanta. Doncic hails from Slovenia, which sits near the Adriatic Sea and is bordered by Italy on the west and Austria on the north.
  • Tie into penalty shootout

    Could this be the first penalty shoot-out of the tournament? It was the sort of cruel miss that leaves you empty, shattered. Here we go! The fourth round of 16 match is about to get underway, Denmark to kick off.
    Trump says he'll name high court pick on July 9

    Trump says he'll name high court pick on July 9

    Kennedy was the swing vote in many key decisions, but for the energy industry, the most impactful was his vote in MA v. Of those he is considering at this point, apparently, two of them are women. "I've got it narrowed to about five", Mr.
    Brazil fans hold funeral for Germany after Russian Federation  2018 elimination

    Brazil fans hold funeral for Germany after Russian Federation 2018 elimination

    After the draw for the 2018 World Cup was announced, no one would have foreseen that South Korea would oust Germany . As for their own team, the fans' disappointment was palpable.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.