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President Trump warned the oil cartel OPEC Monday to not cut production. which he fears would raise costs for consumers.
“Hopefully. Saudi Arabia and OPEC will not be cutting oil production.“ Trump said in a Twitter post. “Oil prices should be much lower based on supply!“
Hopefully. Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!
Trump was responding to Saudi Arabia and Russia signaling this past weekend that they are seeking to cut oil production again next year to increase prices. after temporarily boosting their output this year to mollify Trump ahead of the midterm elections.
Before recently raising oil output. OPEC and Russia had cut production for 18 months. Trump repeatedly criticized that policy approach before the midterms. worrying higher oil prices would raise gasoline costs at the pump.
OPEC. led by largest producer Saudi Arabia. and non-OPEC countries. namely Russia. did not make any formal decisions about another policy shift during a meeting in Abu Dhabi on Sunday.
But Saudi Arabia’s Energy Minister Khalid al-Falih said Monday that OPEC and its partners would have to cut production by 1 million barrels per day to offset lower prices and balance their budgets.
Al-Falih said the Saudis would cut exports by 500.000 barrels per day in December. A firm decision by the group is expected at a follow-up meeting in Vienna next month.
Brent crude. the international benchmark. has fallen to barely more than $70 per barrel after breaching $85 in October. The fall came after Saudi Arabia and Russia. the top two oil producers outside the U.S.. began boosting output a few months ago. partially in response to Trump. whose hardline policy of cutting off Iran’s oil was leading to higher prices.
The Trump administration recently granted temporary exemptions to some of Iran’s biggest customers. allowing them to continue importing Iranian oil. which has also helped ease prices. along with prolific output from U.S. shale producers. But oil market experts expected the price to rise after the midterms if the Trump administration successfully negotiated with most of the exempted countries to stop importing from Iran.
Iran is the third-largest producer of the oil cartel OPEC. providing more than 2 percent of global oil output.
