Crude oil futures were steady Friday morning, clinging to strong recent gains that took prices to the highest since 2014.
Saudi King Salman bin Abdulaziz Al Saud has made no specific promises to US President Donald Trump on the increase of oil production, according to media reports, Spurnik reported. "He has agreed!" read the tweet.
Trump said in a tweet he had asked the king for such an increase and the king had agreed. The US president says King Salman agreed, although that claim remains unconfirmed by Riyadh. Supply disruptions owing to geopolitical tensions, record global demand and positive outlook from analysts and investment banks aided positive momentum in the oil market.
The move is yet to be approved by other members of the Organization of Petroleum Exporting Countries and its allies, and some such as have said they aren't in favour.
Saudi Arabia now produces some 10 million barrels of crude oil a day.
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"This will push the system close to the limit", and spare production capacity could fall below 2 million barrels a day - a level previously associated with $100 per barrel prices, the group said.
"We believe that Saudi Arabia will particularly increase output over the summer to meet its seasonally higher demand and bring Opec production to the target level". Gen. Mohammed Barkindo (R) and Angola's Governor for OPEC and Chairman of the Board of Governors Estevao Pedro (2nd L) at the 173rd OPEC Conference in Vienna on November 30, 2017. Officials didn't immediately respond to a request for comment.
"Iran is in a really frightful position right now", said Sara Vakhshouri, head of Washington, DC-based consultant SVB Energy International. The kingdom pumped slightly more than 10 million barrels a day in May.
The Trump administration is pushing countries to cut all imports of Iranian oil from November when the United States re-imposes sanctions against Tehran, after Trump withdrew from a 2015 nuclear deal agreed between Iran and six major powers.
Non-OPEC member Russian Federation on June 23 also backed the effort, capping a week of tense diplomacy for the bloc that averted a damaging rift between arch foes Iran and Saudi Arabia.
It's not clear the US will achieve a full halt, since even American allies are displeased with its unilateral abandonment of the deal that curbed Iran's nuclear program. South Korea accounted for 14 percent of Iran's oil exports a year ago, according to the U.S. energy department.
Key buyers Turkey and India, who had continued purchasing oil throughout the previous sanctions under the Obama Administration, may continue trading with the Subcontinent, although India is concerned about the risk of losing access to the USA financial system. Turkey stood at 9 percent and Italy at 7 percent.
Iran's Supreme Leader Ayatollah Ali Khamenei on Saturday accused Washington of trying to turn Iranians against their government.