White House backs off Tweet on Saudis helping lower oil prices

White House backs off Tweet on Saudis helping lower oil prices

White House backs off Tweet on Saudis helping lower oil prices

In a morning tweet from his private golf club in Bedminster, N.J., Trump said he made the request during a conversation with Salman, citing the "turmoil" and dysfunction in Venezuela and Iran for driving up prices at the pump.

"President Trump's reckless decision to pull out of the Iran deal has led to higher oil prices", Senate Minority Leader Charles Schumer, D-N.Y., said last month during a photo op outside an Exxon station.

Trump is concerned about the hike in gasoline prices in the United States, where a gallon costs an average of $2.85, which is 63 cents more than past year, according to estimates of the American Automobile Association (AAA).

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.

US President Donald Trump has urged Saudi Arabia to sharply increase its oil production to combat the rising cost of fuel, according to a BBC NEws report on Sunday.

"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, and the efforts of producing countries to compensate for any potential shortage of supplies", the Saudi government said in a statement.

The telephone exchange is another sign of how US-Saudi ties have improved under Trump compared with the Obama administration, which alienated the kingdom by seeking a nuclear deal with Iran.

"Saudis are used to U.S. requests for oil", Halff said.

Essam El-Hadary breaks World Cup record for oldest player
Mohamed Salah scores Egpyt's goal against Saudia Arabia at Volgograd Arena on June 25, 2018. Salah's 22nd-minute goal was a typical effort that his fans have grown accustomed to.

In recent weeks, worries about declining oil exports from Iran have been pushing up oil prices.

"They bring to bear economic pressure to separate the nation from the system. but six U.S. presidents before him tried this and had to give up", Khamenei was quoted as saying on Saturday by his website Khamenei.ir, referring to Trump.

"This is just simply not doable", said one senior Saudi oil official cited by the Journal.

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. Saudi Energy Minister Khalid Al-Falih indicated the group's action would add almost 1 million barrels a day to the market. Trump's tweet offered no timeframe for the additional 2 million barrels - whether that meant per day or per month.

Brent crude, the global 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.

He did not specify if the figure was barrels per day (bpd), the normal measure for oil production. Trump past year chose Saudi Arabia for his first foreign trip.

Iran's OPEC governor, Hossein Kazempour Ardebili, accused the United States and Saudi Arabia of trying to push up oil prices and said both countries are acting against the foundation of OPEC.

Related news