The White House late Saturday issued a statement backing down from Donald Trump’s earlier tweet indicating that he had convinced Saudi Arabia’s king to produce as much as 2 million barrels of additional oil a day to bring prices down.
The White House statement said instead that while King Salman bin Abdulaziz confirmed his country has the extra production capacity, the Saudis will “prudently” use it “if and when necessary to ensure market balance and stability, and in coordination with its producer partners, to respond to any eventuality.”
Saudi Arabia regulates its oil production in agreement with other members of the Organization of Petroleum Exporting Countries.
White House press statement
Trump tweeted that after the two men had a phone conversation Friday King Salman had “agreed” to increase oil production, “maybe up to 2,000,000 barrels.”
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
The state-run Saudi Press Agency confirmed Saturday that Trump had spoken with Salman on the phone about the need to “maintain the stability of oil markets,” The Wall Street Journal reported. But there was no mention of any agreement or oil amount.
If Trump made such a request, Iran’s OPEC governor Hossein Kazempour Ardebili told Bloomberg, that meant the president was calling on the Saudis to ignore their commitment to OPEC. “There is no way one country could go 2 million barrels a day above their production allocation unless they are walking out of OPEC,” he said.
Saudi Arabia may increase its output by up to 1 million gallons of oil a day due to OPEC talks last week — not because of a request by Trump, said Bloomberg. The nations agreed at a meeting in Vienna last with other OPEC members to modify earlier reductions in output.
Rising oil prices are impacting American prices at the pump. Average prices for unleaded gas, including taxes, averaged $2.83 a gallon for the week ending June 25 — up about 55 cents over the same period last year. The higher gas prices are a serious GOP concern as the midterm elections approach.