OPEC, Russia rebuff Trump’s call for prompt crude oil output boost

Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), and its biggest oil-producer ally outside the group, Russia, ruled out on Sunday any immediate and additional increase in crude output, effectively rebuffing US President Donald Trump’s calls for action to cool the market, Reuters reported on Monday.

“I do not influence prices,” Saudi Energy Minister Khalid al-Falih told reporters as OPEC and non-OPEC energy ministers gathered in Algiers, Algeria for a meeting that ended with no formal recommendation for any additional supply boost.

Benchmark Brent oil LCOc1 reached $80 a barrel this month, prompting Trump to reiterate on Thursday his demand that OPEC lowers prices.

The price rally mainly stemmed from a decline in oil exports from OPEC member Iran due to fresh US sanctions.

“We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now!” Trump wrote on Twitter.

Falih said that Saudi Arabia had spare capacity to raise output but such a move was not required at the moment and might not be needed next year as, according to OPEC’s projections, a stellar rise in non-OPEC production could exceed global demand growth.

“The markets are adequately supplied. I don’t know of any refiner in the world who is looking for oil and is not able to get it,” Falih said.

Saudi Arabia could raise output by up to 1.5 million barrels per day (bpd) if needed, according to Falih.

“Given the numbers we saw today, that [an output increase in 2019] is highly unlikely unless we have surprises on the supply and demand,” Falih added.

The statement from Trump, meanwhile, was not his first criticism of OPEC.