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Oil Prices Are Rising. Trump Claims He Made a Saudi Deal

In Saturday tweet, president says King Salman has vowed to boost oil production
By Newser Editors and Wire Services
Posted Jun 30, 2018 9:20 AM CDT
President Trump speaks to reporters on Air Force One on Friday on his way to Bedminster, NJ.   (AP Photo/Manuel Balce Ceneta)

(Newser) – After a couple of early morning tweets that defended ICE, President Trump followed that up Saturday with an unrelated announcement: that he'd received assurances from Saudi Arabia's King Salman that the kingdom will increase oil production, "maybe up to 2,000,000 barrels," in response to turmoil in Iran and Venezuela, per the AP. Trump wrote on Twitter he'd asked the king in a call to increase oil production "to make up the difference ... Prices to (sic) high! He has agreed!" About an hour later, the state-run Saudi Press Agency acknowledged the call but offered few details. "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," the statement said, adding there also was an understanding that oil-producing countries would need "to compensate for any potential shortage of supplies."

Oil prices have edged higher as the Trump administration has pushed US allies to end all purchases of oil from Iran. The administration has threatened close allies such as South Korea with sanctions if they don't cut off Iranian imports by early November. Oil prices also have risen with the ongoing unrest in Venezuela, as well as with fighting in Libya over control of that country's oil infrastructure. The Trump administration has been counting on Saudi Arabia and other Organization of the Petroleum Exporting Countries (OPEC) members to supply enough oil to offset the lost Iranian exports and prevent oil prices from rising sharply. Saudi Arabia currently produces some 10 million barrels of crude oil a day; its all-time record is 10.72 million barrels a day. Trump's tweet offered no time frame for the additional 2 million barrels, not making clear whether that meant per day or per month.

(Read more President Trump stories.)

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