Saudi King made no promises on oil production despite Trump's request

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Saudi Arabia acknowledged the call took place, but mentioned no production targets.

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.

"Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil and disfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference", Trump wrote on Twitter.

"Prices to [sic] high!" The agency didn't say the leaders agreed or make any reference to 2 million barrels.

Saudi state media reported that during the call, the Saudi king and Trump emphasized the need to preserve oil market stability and efforts of oil-producing countries to compensate for any potential shortage.

Oil was the star commodity over 2017-18, and now, despite the move by OPEC to ease its production cap (with Russian Federation and other producers), some analysts are wondering when $US100 a barrel will be regained for the first time since 2014.

Though the OPEC didn't disclose country quotas in the recent announcement of 1bpd output hike, Bell sees there are a few countries with available capacity to raise production and any increase in production would be borne most significantly by Saudi Arabia, the UAE and Kuwait.

Jordan added: "It's noteworthy that the Saudis did not want to say that they are committed in any official output level, that they would be inclined to have any financial dealings with Iran in the face of any possible United States sanctions". "While Saudi Arabia has the capacity in theory, it takes time and money to bring these barrels online, up to one year", she said.

Trump claims Saudi Arabia will boost oil production
Trump applauded the decision to increase supply, writing on Twitter that OPEC needs to "keep the prices down". "He has agreed!" Mr.

Trump's aim may be to exert maximum pressure on Iran while at the same time not upsetting potential USA midterm voters with higher gas prices, said Antoine Halff, a Columbia University researcher and former chief oil analyst for the International Energy Agency. That was after Saudi Energy Minister Khalid al-Falih said the kingdom would honor the OPEC decision to stick to a 1-million-barrel increase.

U.S. President Donald Trump speaks to the press aboard Air Force One en route to Bedminster, New Jersey, from Joint Base Andrews, Maryland, U.S., June 29, 2018.

That agreement sought to curb Tehran's nuclear capabilities in exchange for the lifting of some sanctions.

The administration has threatened close allies such as South Korea with sanctions if they don't cut off Iranian imports by early November. Iran is a major supplier of oil to countries across the globe including India and China.

With this move, the Trump administration has increased pressure on allies to stop funding to Iran.

The value of Iran's currency, the rial, has tumbled since Washington backed out of the Iran nuclear deal in May.

Iranian OPEC governor Hossein Kazempour Ardebili told Bloomberg that Trump's request amounts to "calling on [Saudi Arabia] to walk out from OPEC".

Investors are betting Saudi Arabia has little room to respond to a future crisis should it boost output even more to meet Trump's request, as Saudi Arabia only has about 2 million barrels of unused capacity, according to International Energy Agency. "This was managed between the two to rob the pocket of rest of the world", he said.