SHAFAQNA- Days after the U.S. president criticized OPEC for high oil prices at the United Nations General Assembly and he requested to stop raising prices, and to start lowering prices, Saudi state news agency SPA reported that Trump and Saudi Arabia’s King Salman discussed efforts being made to maintain supplies to ensure oil market stability and global economic growth. They also discussed developments in the region and the world.
The reports, however, did not elaborate on details of the discussions between leaders of the US and the the world’s top oil exporter.
The White House said in a statement that the two leaders had a call “on issues of regional concern”, without giving further details, PressTV reported.
According to a Saturday report by Riyadh-based official daily Arab News and other state media outlets, Trump and King Salman bin Abdulaziz also discussed mutual ties and “means of developing” their strategic partnership, efforts to “maintain the supply and stability of the oil market” and “ensuring the growth of the global economy.”
Trump’s been increasing the pressure on OPEC
Last week, Trump called again on the exporting group to boost crude output to cool the market ahead of midterm elections in November for U.S. Congress members.
Speaking at the United Nations General Assembly in New York ,Trump said OPEC members were “as usual ripping off the rest of the world”.
“I don’t like it. Nobody should like it,” Trump said on Tuesday.
“We defend many of these nations for nothing, and then they take advantage of us by giving us high oil prices. Not good. We want them to stop raising prices, we want them to start lowering prices”, Reuters reported.
Oil prices jump 1%
Trump’s demand for suppressing oil prices followed his unilateral decision to leave an international nuclear deal with Iran and re-impose sanctions on the country, leading to surging international crude prices to levels not seen since 2014.
Concerns about supply constraints likely to emerge once the new sanctions come into place in November are driving the oil price higher right now.
Oil prices jump 1% as markets continue to prepare for the imposition of fresh sanctions on Iran by the US.
Oil prices rose more than 1 percent on Friday, with Brent climbing to a four-year high, as U.S. sanctions on Tehran squeezed Iranian crude exports, tightening supply even as other key exporters increased production.
Brent crude LCOc1 futures settled at $82.72 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 futures settled at $73.25 a barrel.
“Oil prices remain in the bulls domain amid concern that US sanctions on Iranian crude oil exports will result in much tighter physical market conditions once they take effect in November,” Stephen Innes, head of trading for Asia at OANDA, said in an email, thisisinsider told.
Oil prices are set to increase further in the coming months, with JPMorgan last week arguing that Brent could spike as high as $90 per barrel in the coming months.
A fresh rally in oil prices as the US prepares to impose new sanctions on Iran is set to hit President Donald Trump at ballot boxes in mid-term elections in November.
Saudi Arabia is expected to add oil to the market
Saudi Arabia is the world’s top oil exporter and OPEC’s de-facto leader. Saudi Arabia is expected to add oil to the market to offset the drop in Iranian production.
Two sources familiar with OPEC policy told Reuters that Saudi Arabia and other OPEC and non-OPEC producers had discussed a possible production increase of about 500,000 barrels per day (bpd). But OPEC and other major oil producers have so far ruled out any immediate official increase in output. The move effectively rebuffed Trump’s calls on oil producers to take action.