Opec, Russia rebuff call to boost crude oil output

Algiers (Algeria), Sept. 23: Opec’s leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, ruled out on Sunday any immediate, additional increase in crude output, effectively rebuffing US President Donald Trump’s calls for action to cool the market.

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

Benchmark Brent oil reached $80 a barrel this month, prompting Trump to reiterate on Thursday his demand that the Opec lower 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 tweeted.

Falih said Saudi Arabia had spare capacity to increase oil output but no such move was needed at the moment. “My information is that 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.

However, he signaled Saudi Arabia stood ready to increase supply if Iran’s output fell: “Whatever takes place between now and the end of the year in terms of supply changes will be addressed.”

The statement from Mr Trump was not his first criticism of Opec.

Higher gasoline prices for US consumers could create a political headache for Republican Trump before mid-term congressional elections in November.

Iran has accused Trump of orchestrating the price rally by imposing sanctions on Tehran and accused Saudi Arabia of bowing to US pressure.

Higher gasoline prices for US consumers could create a political headache for Republican Trump before midterm congressional elections in November.

The statement was not Trump’s first criticism of Opec for rising oil prices.