President Donald Trump said early Saturday that the crude oil swing producer Saudi Arabia has agreed to increase production by up to 2 million barrels a day.
Through Twitter, Trump stated that his talks with the Saudis focused on the need to reduce crude oil production to combat expected production interruptions in major Iran and Venezuela producers.
The tweet read: "I have just spoken with King Salman of Saudi Arabia and told him that Saudi Arabia should increase oil production due to the riots [sic] in Iran and Venezuela, perhaps even to 2,000,000 barrels, To make up for the difference … Prices too high! He agreed! "(See below)
I have just talked to King Salman of Saudi Arabia and told him that Saudi Arabia was in trouble over Iran and Venezuela increase oil production, maybe even increase up to 2,000,000 barrels to make up for the difference … prices too high! He agreed!
̵1; Donald J. Trump (@realDonaldTrump) June 30, 2018
The President accused the organization of oil-exporting countries of a recent surge in prices that he had in the past said: " will not accepted . "
OPEC has teamed with Russia and other major producers to curb production – an effort that has helped bring crude oil back to its 2014 level.
On Friday, West Texas Intermediate Crude was traded on the New York Mercantile Exchange for delivery in August
CLQ8, + 1.09%
the international benchmark, closed down 1%. Prices for the front month contract climbed to just over 8% for the week, a monthly gain of nearly 11%, rising over 14% for the second quarter, with a rally in the first half of nearly 23% According to data compiled by WSJ Market Data Group and FactSet Data
For comparison, the Dow Jones Industrial Average
DJIA, + 0.23%
fell 1.3% last week, 0.6% in June, and a 0.7% gain in the second quarter, but is still 1 , 8% fell this year. The S & P 500 Index
SPX, + 0.08%
saw a similar weekly decline, up 0.5% in June, up 2.9% in the second quarter, and up 1.7% in the first half increased.
The further increase in the price of crude oil was a decision by the Trump government to lift Iran's 2015 nuclear agreement and impose sanctions on the country and limit production. Political turbulence in Venezuela, a major crude oil producer, also contributes to higher prices.