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Trump, Saudi king agree to boost production to battle rising oil prices

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Press Trust of India Washington
Last Updated : Jul 01 2018 | 10:10 AM IST

US President Donald Trump has said that Saudi Arabia King Salman has agreed to his request to increase oil production "maybe up to 2,000,000 barrels" to make up for a shortfall from Iran and Venezuela.

"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!" President Trump tweeted.

The telephonic call between Trump and King Salman on Friday assumes significance in view of the increasing global oil prices, and US asking countries to stop purchasing oil from Iran, which is a major supplier of oil to countries across the globe including India and China.

Trump and Salman reiterated their commitment to the strong United States-Saudi Arabia partnership across political, security, and economic fields.

"The two leaders reaffirmed their dedication to a healthy and stable global energy market for the benefit of all nations. The two leaders agreed that balancing the global oil market is essential to ensure access to reliable and affordable energy to people everywhere," the White House said in a readout of the call.

"In response to the President's assessment of a deficit in the oil market, King Salman affirmed that the Kingdom maintains a two million barrel per day spare capacity, which it will prudently use if and when necessary to ensure market balance and stability, and in coordination with its producer partners, to respond to any eventuality, the White House said.

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First Published: Jul 01 2018 | 10:10 AM IST

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