Trump expects Saudi Arabia to boost oil production

BERKELEY HEIGHTS, N.J. — President Donald Trump said Saturday that he had received assurances from King Salman of Saudi Arabia that the kingdom will increase oil production, “maybe up to 2,000,000 barrels” in response to turmoil in Iran and Venezuela.

Trump wrote on Twitter that he had asked the king in a phone call to increase oil production “to make up the difference ... Prices to (sic) high! He has agreed!”

A little more than an hour later, the state-run Saudi Press Agency reported on the call but offered few details.

“During the call, the two leaders stressed the need to make efforts to maintain the stability of oil markets and the growth of the global economy,” the statement said.

It added that there also was an understanding that oil-producing countries would need “to compensate for any potential shortage of supplies.” It did not elaborate.

Oil prices have edged higher as the Trump administration has pushed allies to end all purchases of oil from Iran following the U.S. pulling out of the nuclear deal. Oil prices also have risen with the unrest in Venezuela, and with fighting in Libya over control of that country’s oil infrastructure.

Summer months in the U.S. usually lead to increased demand for oil, pushing up the price of gasoline in a midterm election year. A gallon of regular gasoline was selling on average in the U.S. for $2.85 recently, up from $2.23 a gallon last year, according to AAA.

Trump is trying to exert pressure on Iran while not upsetting potential U.S. midterm voters with higher gas prices, said Antoine Halff, a Columbia University researcher and former chief oil analyst for the International Energy Agency.

Saudi Arabia currently produces some 10 million barrels of crude oil a day. Its record is 10.72 million barrels a day. Trump’s tweet offered no timeframe for the additional 2 million barrels — whether that meant per day or per month.