Trump prods Saudis to increase oil output

President Donald Trump tweeted Saturday that he had again leaned on Saudi Arabia, the world’s largest oil exporter, to increase production by as much as 2 million barrels a day.

In recent months, Trump has used tweets and other messages to pressure the Saudis and OPEC to increase supplies. His tweet Saturday came as many Americans were hitting the roads to begin an extended Fourth of July holiday.

In recent weeks, the Trump administration has been signaling that it wants to take much of

Iran’s oil exports off the market. Worries about the loss of that oil have been pushing up oil prices. Analysts say Saudi help in mak- ing up for lost Iranian crude oil will be crucial to Trump’s efforts to contain Iran while not forcing prices up too high to cause political damage in the U.S. “This strategy hinges on Saudi Arabia,” Helima Croft, an analyst at RBC Capital Markets, said Friday.

Pressure from Tump did help prod Saudi Arabia, Russia and other producers to agree to gradually increase supply by as much as 1 million barrels a day at meetings June 22 and 23 in Vienna. “We will do whatever is necessary to keep the market in balance,” the Saudi energy minister, Khalid Al-Falih, told journalists at OPEC headquarters in Vienna at the end of the meeting, with Russia’s energy minister, Alexander Novak, seated at his side.

Since then, though, the Trump administration has upped the ante by signaling a tough line on closing down Iranian production. Since the lifting of sanctions in 2016, Iran has returned as a major oil supplier, selling around 2.5 million barrels a day, or more than 2 percent of global supplies. Traders worry that a major curtailment of Tehran’s output could risk creating a supply crunch that might drive prices skyward.

In a statement Saturday, Saudi Arabia said King Salman had spoken to Trump and that the leaders discussed the need to address any potential shortages in the supply of oil as well as maintain stability in the oil markets. The statement did not include any specific figures.

Al Drago / New York Times President Donald Trump speaks to reporters aboard Air Force One as he travels to his resort in Bedminster, N.J., on Saturday.