Video: Why Trump is under pressure to boost oil output

Tue 10 Jul 2018 10:08 AM GST
US President has repeatedly lashed out at OPEC on Twitter in recent months, piling pressure on Riyadh, a major ally, to boost output.

Late last month he surprised everyone by saying that Saudi Arabia's King Salman had agreed to his request to ramp up oil production, a week after OPEC already announced an output rise.

The official Saudi Press Agency confirmed a phone call between the two leaders about oil, but mentioned no specifics.

"Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & dysfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference," Trump announced in an early morning tweet. "Prices too high! He has agreed!"

Later, the White House released a more cautious statement saying "the two leaders reaffirmed their dedication to a healthy and stable global energy market for the benefit of all nations."

Oil officials also said it is debatable whether the kingdom would be able to raise output by the amount Trump suggested. "This is just simply not doable," said one senior Saudi oil official.

In this edition of Inside AB, Jeremy Lawrence and Eddie Taylor ask what Trump thinks he can get from Saudi Arabia, where oil prices could go next as a result, and what now for the shifting sands of OPEC alliances.

(Source: Arabianbusiness.com YouTube channel)

Last Updated: Tue 10 Jul 2018 11:43 AM GST