Million-barrel question: How GCC will benefit from Opec output hike

Million-barrel question: How GCC will benefit from Opec output hike

Million-barrel question: How GCC will benefit from Opec output hike

Amid reports Saudi Arabia's oil output for June is at near-record levels, President Trump tweeted Saturday that Saudi King Salman "agreed" in a phone conversation to increase oil production to roll back oil prices.

Al Jazeera's Rosiland Jordan, reporting from Washington, DC, said "it is not unusual" for the White House to put pressure on OPEC members to increase oil output "mainly because the USA president is first and foremost concerned about the cost of gasoline and consumer fuels, especially in an election year" - the U.S. will hold midterm congressional polls in November.

Saudi Arabia is the world's biggest exporter of oil and produced about 10 million barrels a day in May. They did state how much extra supply they would add.

Trump and Salman reiterated their commitment to the strong United States-Saudi Arabia partnership across political, security, and economic fields.

They also spoke about the efforts of producing countries to compensate for any potential shortage of supply, the statement said. Saudi oil officials did not immediately comment.

That might be fine by Trump, who earlier this month blamed rising prices on OPEC, but has fostered close ties to Saudi Arabia.

JXTG Holdings recently bought 2 million barrels of West Texas Intermediate crude for arrival by September, according to three industry sources.

FGE, an energy consultancy, said in its June newsletter that the United States is determined to "push Iran's exports to zero".

Trump's aim may be to exert maximum pressure on Iran while at the same time 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.

Last week, OPEC countries and other major oil producers that participate in the 2016 Vienna cut deal agreed during a meeting in the Austrian capital to increase production to 1 million barrels per day, that is the volume of the countries' overcompliance with the agreement.

In recent weeks, worries about declining oil exports from Iran have been pushing up oil prices. Iran being its third largest supplier of oil, India is poised with a possible oil problem after the deadline.

"They bring to bear economic pressure to separate the nation from the system. but six USA presidents before him tried this and had to give up", Khamenei was quoted as saying on Saturday by his website Khamenei.ir, referring to Trump.

Iran's Supreme Leader Ayatollah Ali Khamenei on Saturday accused Washington of trying to turn Iranians against their government.

Output is expected to rise to 11 million barrels in July, according to Reuters.

"They bring to bear economic pressure to separate the nation from the system. but six United States presidents before him tried this and had to give up", Khamenei was quoted as saying on Saturday by his website Khamenei.ir, referring to Trump.

"Kuwait will raise its oil production from tomorrow to 2.785 million barrels, a daily increase of 85,000 compared to May, based on last week's production cut agreement", Rashidi told Arabic-language daily Al-Rai.

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