Trump says Saudi Arabia has agreed to increase oil production

Oil jumps as market anticipates U.S. sanctions on Iran

US President Donald Trump on Saturday said Saudi Arabia's King Salman had agreed to his request to ramp up oil production.

Trump is trying to exert maximum pressure on Iran while at the same time not upsetting potential US midterm voters with higher gas prices, said Antoine Halff, a Columbia University researcher and former chief oil analyst for the International Energy Agency.

Saudi Arabia has a maximum sustainable capacity of 12 million bpd, but the world's top oil exporter and Organization of Petroleum Exporting Country's biggest producer has never tested that high level of production.

Opec producers led by Saudi Arabia agreed with Russian Federation and other oil producers on June 22 to raise output by about 1 million bpd to offset declines from Iran and almost bankrupt Venezuela.

Saudi authorities acknowledged that the two leaders had a conversation but had no immediate comment on its substance.

The official Saudi Press Agency confirmed a phone call between the two leaders about oil, but mentioned no specifics.

A little over an hour later, the state-run Saudi Press Agency reported on the call, but offered few details.

Harry Kane dropped as England prepare to play B team against Belgium
Belgium has fared little better - winning just one knockout game at the big dance since finishing fourth in the 1986 World Cup . Totally understand all the counter-arguments, including momentum and, yes, the possibility of facing Colombia.

It added that there also was an understanding that oil-producing countries would need "to compensate for any potential shortage of supplies".

"We are in a very attractive oil price environment and our house view is that oil will hit $90 by the end of the second quarter of next year", Hootan Yazhari, head of frontier markets equity research at Bank of America Merrill Lynch told CNBC.

"All the potential shortfalls could outstrip the production increase agreed to by OPEC and Russian Federation", said Dominick Chirichella, Director of Risk Management at EMI DTN.

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 and suggested some exemptions were possible. Its all-time record is 10.72m barrels a day.

A pump jack lifts oil out of a well, during a sandstorm in Midland, Texas, U.S., April 13, 2018.

"It is a strategic move [from Saudi Arabia] to side with Trump at this point and I think what we have seen so far is a combination of an oil price war as well as an indirect diplomatic confrontation between the Iranians and other OPEC members", Mohammed Cherkaoui, professor of conflict resolution at George Mason University, told AL Jazeera from Washington, DC.

The administration has threatened close allies such as South Korea with sanctions if they don't cut off Iranian imports by early November. There's a risk that supplies from Iran could be cut further as there's pressure on other countries to join the United States in sanctions, he said. The State Department is now insisting that other countries stop importing Iranian oil - or face sanctions from Washington.

Related news:

Hot News

isis-killer-beheading-video-story-top Warriors Rumors: Golden State Plans to Explore DeAndre Jordan in Free Agency
Jun 30, 2018 - 21:20
It's important to note that Jordan would have made $24.1 million if he chose to exercise his player option in Los Angeles. Per ESPN , the Mavericks have about $27.1 million in salary cap space after declining Nowitzki's option.

isis-killer-beheading-video-story-top Shutterstock/CNNMONEY White House decides against outright limits on Chinese investment
Jun 30, 2018 - 20:52
It comes as the USA and China both prepare to slap tariffs on $34bn worth of each others' goods. CFIUS has already been more aggressive under Trump, especially on China.

isis-killer-beheading-video-story-top Trump says he will ask lawmakers for more funding for border wall
Jun 29, 2018 - 04:50
After retreating on the family separations, Trump urged Congress to act quickly and follow up his order with legislation. He eliminated the separations, but still insisted that his zero tolerance policy remained in effect.

isis-killer-beheading-video-story-top Amazon buying online pharmacy with nationwide reach; drug store stocks dive
Jun 29, 2018 - 03:43
Shares of Cardinal Health , AmerisourceBergen , McKesson , and Express Scripts all dropped more than 3% on the news. Its pharmacy is based in Manchester, N.H., and its business operations are located in Somerville, Mass.

isis-killer-beheading-video-story-top Mom Shares Warning About Riding Down Slide With a Child
Jun 29, 2018 - 03:39
Heather Clare , a mother of three from NY , issued a warning on Sunday, June 24: Riding down slides with kids is risky . When I realized what was happening, I used my top hand to try to stop us and leaned to release her foot.

isis-killer-beheading-video-story-top Trump blasts Harley-Davidson’s decision to shift production overseas
Jun 29, 2018 - 02:36
The EU targeted the United States vehicles as part of its rebuttal to Trump's tariffs on imported aluminum and steel. Harley's departure is particularly embarrassing for Trump since the president has repeatedly praised the company .

isis-killer-beheading-video-story-top The Supreme Court Gets Trumpier
Jun 29, 2018 - 02:13
Just hours after Supreme Court Justice Anthony Kennedy announced his retirement on Wednesday, Republican Sen. Pragmatically, with the Republicans in control of the Senate, the chances are very slim.

isis-killer-beheading-video-story-top Google is Rolling Out a Fix For The Chromecast Outage
Jun 28, 2018 - 19:24
Google is acknowledging the issue, confirming the problems to TechCrunch , but isn't getting specific at this stage. People reported being unable to stream on Chromecast , or use Chromecast to connect to other devices.

isis-killer-beheading-video-story-top New Clinic Opens In St. Petersburg Ahead Of National HIV Testing Day
Jun 28, 2018 - 18:26
National HIV Testing Day is a reminder to get the facts, get tested, get involved and to take care of yourself and your partner. Philip said the state has two programs it plans to roll out to all 67 county health departments by the end of 2018.

isis-killer-beheading-video-story-top Trump's half-truths on Harley overseas plans
Jun 28, 2018 - 17:48
How would this work? Meaning, each Harley Davidson bike is now about $2,200 more expensive to export, according to the company. Harley-Davidson says it will not raise its prices to avert " an immediate and lasting detrimental impact " on sales in Europe.

isis-killer-beheading-video-story-top Trump to Harley-Davidson: 'We won’t forget, and neither will your customers'
Jun 28, 2018 - 17:24
The company doesn't have specific information on where production for the European Union will take place, he said. The rift is particularly notable because Harley-Davidson has traditionally, had strong support within the GOP .

isis-killer-beheading-video-story-top Border Patrol: ‘Catch and release’ policy temporarily reinstated for illegal immigrant families
Jun 27, 2018 - 03:40
Homeland Security officials have said authorities know the location of all children in custody and were working to reunite them. The Trump policy was billed as a deterrent - using federal agents to draw a line at the border and stop illegal immigration .

isis-killer-beheading-video-story-top Paolo Guerrero Hugs Mile Jedinak For Helping Him Play At World Cup
Jun 27, 2018 - 02:49
ET. "They won but they didn't play the way they can play and they are one of the best teams in the world", van Marwijk said. Farfan himself took to social media to confirm that despite his desire to play, he must miss Peru's final group game.

isis-killer-beheading-video-story-top Prince Harry and Meghan Markle to visit Croke Park
Jun 27, 2018 - 01:35
The Queen was all smiles at the event as she shook hands with David Beckham and Nicola Adams before the ceremony began. Meghan Markle had a whirlwind first month as a royal , and her schedule is only getting busier by the day.

isis-killer-beheading-video-story-top Our iPhone friends can now download the iOS 12 public beta
Jun 27, 2018 - 01:22
Those predictions are based on previous Apple release history and trying to predict future behavior based on historical patterns. Apple has run a Switch to iPhone campaign for years and offers a Move to iOS app for Android switches in the Google Play Store.