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
CNBC: How a surprise deal to boost world oil supply could 'stir the pot' in the Middle East, and pressure Saudi's spare capacity
* The U.S. and Saudi Arabia struck a side deal to boost oil supply by 2 million barrels per day, according to President Donald Trump.
* Analysts say that deal could prove a challenge to Saudi's spare oil supply, and 'stir the pot' in the volatile Middle East.
* In particular, Iran and Venezuela are both reeling economically, with Tehran feeling the bite of new sanctions.
An impromptu agreement between the United States and Saudi Arabia to add more supply to increasingly tight oil markets is perceived as a test of the kingdom’s ability to pump more crude — and could further antagonize Iran and Venezuela, as both countries grapple with deteriorating conditions in their respective economies.
Barely a week after OPEC's decision to ramp up oil supplies, President Donald Trump surprised the world on Saturday by announcing a new side agreement with the Saudis to compensate for supply shortages from crisis-hit producers, Iran and Venezuela. Both countries resisted the oil cartel's decision last month, even though OPEC demurred on how much it would boost supply.
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WNU Editor: The Saudi king promised Presdient Trump that Saudi Arabia will raise production by 2 million. But I agree with this assessment, I just do not see how it is possible .... Can Saudi Arabia pump much more oil? (Reuters). On a side note .... Kuwait is boosting production .... Kuwait pumps up oil output as part of OPEC, Russia plan (DW). And more importantly so is Russia .... Russia oil minister: We came up with oil proposal well before Trump pressured OPEC (CNBC). The Russian timing is also good in view of the Trump-Putin summit in two weeks .... a summit where I am sure that Russian President Putin will be mentioning to President Trump that Russian oil is "helping him" in keeping the price down.
Update: I have a distant relative who runs a oil and gas service company in Alberta (he has been at it for almost 20 years). When the NDP-socialists were elected in Alberta three years ago, they changed the tax and regulatory rules for the oil patch that resulted in the collapse of any growth in the Canadian oil industry (was this done deliberately .... you betcha .... but that is another story). Coupled this with pipeline politics where it is now next to impossible to have a private sector pipeline built in this country .... Canada's oil industry has become the place to not invest your money if you want a return in the short to medium term. My relative realized this three years ago, and so he opened an office in North Dakota. His business has trippled in three years .... and all of that growth is from the U.S.. High prices is boom time for oil producers .... and while the push is to have OPEC members increase production .... the biggest production growth (and impact) will be coming from the U.S..
More News On The Impact Of The U.S. - Saudi Deal To Boost Oil Production
White House, Saudi Arabia Pour Cold Water On Trump's "Saudi Deal" -- Zero Hedge
U.S. Backs Off Trump's Tweet on Saudis Helping Lower Oil Price -- Fortune/Bloomberg
Trump: Saudis agree to large oil production hike -- Axios
Iran urges OPEC members to refrain from unilateral actions -- Reuters
Iran Urges OPEC Not to Boost Oil Output Amid Alleged Saudi Deal With Trump -- Sputnik
