Trump asks Saudi Arabia to increase oil production

President Trump on Saturday said he asked King Salman of Saudi Arabia to increase oil production “maybe up to 2,000,000 barrels” in order to bring prices down.

“Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & 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…Prices to high! He has agreed!” Trump tweeted. 

Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & 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…Prices to high! He has agreed!

— Donald J. Trump (@realDonaldTrump) June 30, 2018

{mosads}It is rare for the U.S. to make a specific request for an output hike.

Saudi Arabia confirmed the call but not the agreement, according to the Associated Press. 

“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,” said a statement from the state-run Saudi Press Agency.

Both countries understand the need “to compensate for any potential shortage of supplies,” it continued.

Bloomberg reported earlier this week that state oil company Saudi Aramco was preparing to increase production in July to about 10.8 million barrels a day after pressure from Trump. It is not clear what the timeframe would be for the request for an additional two million barrels. 

Saudi Arabia’s all-time record is 10.72 million barrels a day. The price of crude oil shot up earlier this week after news broke that the U.S. is asking allies to cut all oil imports from Iran by Nov. 4.

-Updated 9:22 a.m.