Bandar Algaloud | Courtesy of the Saudi Royal Court Reuters
Saudi Arabian king Salman bin Abdulaziz Al Saud shakes hands with US President Donald Trump during a welcome ceremony in Riyadh, Saudi Arabia, May 20, 2017.
President Donald Trump said on Saturday in a tweet that Saudi Arabian King Salman had agreed to his demand for increasing oil production "perhaps up to 2,000,000 barrels" to compensate for production from Iran and Venezuela.
The world's largest oil exporter plans to pump up to 11 million barrels of oil a day (bpd) July, an oil industry source Reuters said this week after OPEC agreed with Russia and other oil producers to increase production by about 1 million bpd ,
Trump tweeted, "Just talking to King Salman of Saudi Arabia and explaining to him, Because of the turbulence in Iran and Venezuela, I demand that Saudi Arabia increase oil production, perhaps up to 2,000,000 barrels to make up for the difference … Prizes too high! He agreed! "
Saudi King Salman and Trump emphasized the need to preserve the stability of the oil market and the efforts of oil-producing countries to compensate for possible bottlenecks, the Saudi media announced on Saturday , However, the statement did not mention Saudi Arabia's intention to increase production to 2 million barrels a day.
The Trump government is urging countries to cease all Iranian oil imports from November onwards, as the US sanctions Tehran after Trump has withdrawn from a nuclear deal agreed between Iran and six major powers in 2015, calling it a "defective" Agreement.
He just spoke to King Salman of Saudi Arabia and told him that because of the riots in Iran and Venezuela, I demand that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels to make up for the difference. Prices too high! He agreed!
– Donald J. Trump (@realDonaldTrump)
30th June 2018
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This agreement was intended to limit Tehran's nuclear capabilities against the lifting of some sanctions. Trump ordered the reintroduction of US sanctions against Iran suspended under the agreement.
U.S. Officials urge allies in Europe, Asia and the Middle East to abide by the sanctions aimed at forcing Iran to negotiate a follow-up agreement to end its nuclear programs.
State Department officials said this week the United States is willing to work with countries on a case-by-case basis to help reduce imports of Iranian oil.
China, the world's largest exporter of crude oil, imported about 655,000 barrels per day from Iran in the first quarter. According to official Chinese customs, this represents more than a quarter of Iran's total exports.
Oil analysts say OPEC producers may not be able to fully supply the market if Iranian oil is withdrawn from the market.