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Trump Asked Saudi Arabia To Boost Oil Production By 1 Million Barrels Per Day

Production

It all started on April 20, when having tweeted at and about virtually everything else, President Trump realized that surging oil and gasoline prices are wreaking havoc on his economic agenda and eating away at the benefits from his tax cuts, and so he made it clear when he lashed out on twitter against OPEC which he said was “at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted!”

The result was instant, sending the price of oil sharply lower….

… and effectively capping the price oil, which is now at the level when Trump made his warning.

Since then Trump’s stance has only hardened, and because the US president has become an especially good friend with the ruling Saudi regime, there has been a dramatic reversal within OPEC, whose next meeting is now expected to see the cartel and Russia modestly boost oil production to comply with Trump’s demand.

But by how much?

This morning Bloomberg reported the answer, when it said that the Trump administration has quietly asked Saudi Arabia and other OPEC producers to increase oil production by about 1 million barrels a day, or – not surprisingly – just enough to offset expected Iran oil export declines as a result of Trump’s renewed embargo on Tehran.

The rare request came after U.S. retail gasoline prices surged to their highest in more than three years and President Donald Trump publicly complained about OPEC policy and rising oil prices on Twitter. It also follows Washington’s decision to reimpose sanctions on Iran’s crude exports that had previously displaced about 1 million barrels a day from global markets.

As Bloomberg adds, while U.S. lawmakers have habitually criticized the Organization of Petroleum Exporting Countries at times of high oil prices, and the government has on occasion encouraged the cartel to pump more, it’s unusual for Washington to ask for a specific output hike, although not that unusual when one considers just how much effort Trump has put into becoming a BFF with the Saudi rulers. Also, Bloomberg notes that it was not clear precisely how the request was communicated.

The disclosure of the American request emerged over the weekend, when some Arab oil ministers discussed oil production in Kuwait City. The meeting was followed by a statement which pledged to “ensure stable oil supplies are made available in a timely manner to meet growing demand and offset declines in some parts of the world.” And, as reported at the time, Saudi Arabia and Russia last month proposed a gradual production increase, although other members of the group have yet to agree.

While the White House refused to comment on any specific conversations with Saudi Arabia, a spokesman told Bloomberg that “we welcome any market-based action that increases energy access and fosters a healthy global economy.”

Treasury Secretary Steven Mnuchin hinted last month that Washington had “various conversations with various parties about different parties that would be willing to increase oil supply to offset” the impact of U.S. sanctions on Iranian oil output. Only four countries among OPEC and its allies hold enough spare production capacity to offset that impact: Saudi Arabia, Russia, the United Arab Emirates and Kuwait.

A formal revision to the cartel’s oil output is expected to be proposed in 2 weeks when OPEC and its allies will meet in Vienna on June 22 and 23 to discuss their production policy for the second half of the year. Saudi Oil Minister Khalid Al-Falih last month said the kingdom shared the “anxiety” of consuming nations about high oil prices and added that OPEC and its allies were “likely” to boost output, undoing nearly 2 years of “progress” following the Vienna oil output deal which cut 1.6 mmb/d from world production in an attempt to eliminate the record inventory overhang, and nearly doubling the price of oil from $45/barrell to $80.

As Bloomberg concludes, the most recent comments by Trump and the request for extra oil are among the most forceful U.S. intervention in OPEC affairs since Bill Richardson, the energy secretary during the second administration of Bill Clinton, phoned the Saudi minister in the middle of an OPEC meeting in 2000 asking for a production increase.

The intervention enraged other members of the cartel, exacerbating a schism between Saudi Arabia and Iran. This time around, it appears that Trump’s peculiar brand of diplomacy may have achieved its goal without angering anyone.

zerohedge



146 Comments on "Trump Asked Saudi Arabia To Boost Oil Production By 1 Million Barrels Per Day"

  1. MASTERMIND on Wed, 6th Jun 2018 12:49 am 

    Greg

    Gross Domestic Product (GDP) is the broadest quantitative measure of a nation’s total economic activity.

    http://www.investinganswers.com/financial-dictionary/economics/gross-domestic-product-gdp-1223

    And for the record I was arguing with clog..you are so obsessed with me..

  2. Cloggie on Wed, 6th Jun 2018 1:02 am 

    “GDP is economic growth..”

    No you insufferable marxist fool.

    GDP is a pile of boxes produced in year X.
    Growth is the difference in pile size between year X and year X+1.

    I can’t believe I am wasting my time on a kindergarten dropout like you.

  3. MASTERMIND on Wed, 6th Jun 2018 1:11 am 

    Clogg

    Whatever way you want to slice it..your economy is in the gutter..the only time worse in history was the great depression.

    OECD GDP Per Capita
    https://data.worldbank.org/indicator/NY.GDP.PCAP.KD.ZG?locati

    Ouch Europe less than one percent GDP per head..LOL

  4. MASTERMIND on Wed, 6th Jun 2018 1:15 am 

    CLogg

    Clogg I found you your dream woman..
    https://i.redd.it/vtnakvaafp111.jpg

    She is the supriour race with the high iq’s..Rite?

    LMFAO!!

  5. GregT on Wed, 6th Jun 2018 1:16 am 

    “Rugged individualism has won the day and as a result we will all together be flushed down the pooper.”

    I would argue that herd mentality is more responsible for humanity’s demise Bloomer, and unless environmental collapse kicks in, this individual has no plans of being “flushed down the pooper” anytime soon.

  6. pat on Wed, 6th Jun 2018 1:39 am 

    “ensure stable oil supplies are made available in a timely manner to meet growing demand and offset declines in some parts of the world.” the BAU not going to continue for longer as world reaches limits of nature. either the oil is heading to 150$ or the economy to collapse into depression but cannot be one way. it more likely seems the oil to breach 100$ barrier very soon as with only more increased demand expected with highly volatile geopolitical, geological, depletion, unrest, declining eroei, high cost etc. prepare….

  7. Cloggie on Wed, 6th Jun 2018 1:50 am 

    “Clogg

    Whatever way you want to slice it..your economy is in the gutter..the only time worse in history was the great depression.”

    Amsterdam airport passenger numbers timeline:

    https://goo.gl/images/WFpidR

    Repeat after me:

    “I am the greatest idiot on this board”

    What are you now?

    Exactly.

  8. MASTERMIND on Wed, 6th Jun 2018 1:55 am 

    Clogg

    I would like to see that chart in an annualized percentage..Not a total number.Because any increase you can make the chart go straight up..and if you look at it..the number of passengers during the 1990-2000. is almost double what the 2000-current numbers are.. You idiot..and you cherry picking a stupid statistic anyways. Amsterdam in hub so it will always be busy with people traveling through.

  9. MASTERMIND on Wed, 6th Jun 2018 2:02 am 

    Pat

    Existing oil reserves are scheduled to begin a catastrophic crash within 1 to 3 years. When it hits the economic and social damage will be catastrophic. The end of Western Civilization, from China to Europe, to the US, will not occur when oil runs out. The economic and social chaos will occur when supplies are merely reduced sufficiently….

    https://imgur.com/a/6dEDt
    https://arxiv.org/pdf/1708.03150.pdf
    https://www.scientificamerican.com/article/has-peak-oil-already-happened/
    http://www.sciencedirect.com/science/article/pii/S0301421509001281
    https://www.scribd.com/document/375110698/The-end-of-Peak-Oil-Why-this-topic-is-still-relevant-despite-recent-denials-Chapman-2014
    https://www.scribd.com/document/375110317/Projection-of-World-Fossil-Fuels-by-Country-Mohr-2015
    http://www.energybulletin.net/sites/default/files/Peak%20Oil_Study%20EN.pdf
    http://www.scribd.com/document/367688629/HSBC-Peak-Oil-Report-2017

  10. print baby print on Wed, 6th Jun 2018 5:50 am 

    Why he asked ? They rump up the shell production they have oil for next 200years , and USA is a net exporter now hahahhahhahahhaha

  11. JuanP on Wed, 6th Jun 2018 8:32 am 

    MM “The end of Western Civilization, from China to Europe, to the US, will not occur when oil runs out.”
    China is not part of Western Civilization, MM, it is a multiethnic civilization that existed for millenia before the West was even born. Europe is a continent that bridges East and West, too. You have Western Europe, Central Europe, and Eastern Europe. Do you consider Georgia, Armenia, or Azerbaijan Western? I don’t, yet they definitely are European nations. I wonder if you have ever since a world map. Do you even know where Europe ends and Asia begins? Do you understand the difference between the EU and Europe? One is a political union and the other a geographical continent! You really should go back to school, but you shouldn’t invest money in it since you already will be broke all your life, what with your huge student loans and no source of income. I dropped out of high school, but worked very hard for 30 years, retired very comfortably at 46, and never, ever had a debt. And that was without taking any money from my family because I emancipated myself at the age of 16. Get a job, go to school, do something useful with your life! Right now you are a terrible waste of resources.

  12. fmr-paultard on Wed, 6th Jun 2018 8:48 am 

    juantard thanks for revealing yourself as a dropout. i know another dropout who went to phils to find bf’s. the problem with america is romanticizing of dropouts like bill gates. reality is a college education means nothing if you don’t apply it to your life and launch your career. i’m honest when i say i’m a tard with a Bachelor with major in physics. i barely graduated. but a high school dropout is a no no. why are you guys allowed to be on the intardweb that my supertards created for me to enjoy? i know a supertard like ((richard stallman)) who fought for freedom to create software, way before I knew why its tantamount importance and way before i found supertard present pault. and i know supertard linus who created open sores and those who created apache. a highschool dropout can’t do it. a tard like myself cant do it.

    would you kindly drop off my intardweb that supertards created for me? yes, i was academic and i spent a lot of time on early intardweb such as usenet that supertards gave me. please go away.

  13. JuanP on Wed, 6th Jun 2018 8:50 am 

    The Russia 2018 World Cup is 8 days away. Russia is hosting the most important event of the year! Long live Russia! Long live Putin!

  14. JuanP on Wed, 6th Jun 2018 8:56 am 

    Retard, Did you comfortably retire at 46? Can you write a proper sentence? Are you fluent in 5 languages? Do you have debt? Even if I was completely illiterate I would still be smarter than you. And, maybe it is news to you that I am a high school dropout, but all the regulars in this forum have known this for years because I am proud of it and never hid it. The fact that retards like you and MM went to college and can’t write a proper sentence is irrefutable proof that a college education has a very relative value.

  15. fmr-paultard on Wed, 6th Jun 2018 9:19 am 

    juantard do you know why i don’t want high school dropouts to hang out on the intardweb that my supertards built for me to enjoy? it’s because my supertards love me and they said only those who graduated from college allowed admission. you’re right and i said as much that a college education means nothing. but a college education means i expect more of myself. i can retire anytime becuase i’m a tard and i do basic research.

    you see i took myself on a diet of DD and ramen noodles so i know how to value money. i invented lazy man farming so i know i can make food the lazy way if i want to. hydroponic is superior to lazy man farming and i didn’t invent that.

    i don’t care much for money. i care about issues such as why things work. i don’t score so i spend all my time to further knowledge and advance understanding. this is becuase i came from a liberal arts background so all i do is think ….

    the way to knowledge is two fold. you eitehr come up with the original thoguht or you read about it. i’m a tard so original thoughts are scant but i read about it. i read and understand supertard rock’s posts and you can’t.

    why is my sister have so much money she can burn herself to char when she only has a high school education? it’s because she’s reaping the benefits of my supertards and so do you.

    without my supertards you’d be walking barefoot and fighting nasty diseases in south america.

    why is it possible to score if you have a clean bedroom? because women’s standard are very low? why? becuase supertards take care of everything else and there’s nothing else to demand. i don’t spend my life to clean up stuff.

    so in recap, i can collect cans and i can retire. you’re not collecting cans but you’re at that level. i can do that and i can show you my college diploma in my backpocket.

  16. fmr-paultard on Wed, 6th Jun 2018 9:33 am 

    juantard you’re lucky to live in america that our supertards built for us to enjoy. that’s why you never go to phils or go back to south america. you’d be worshipping santa muerte in a heartbeat. my supertard friend is an ardent atheist and he was just a short leash away from converting to islam.

    having a college education with major in physics mean i understand basic science. when i encounter new scientific developments i always ask the basic questions that a high school dropout can not answer. i can’t live in that state of confusion. i get teh basic principles and i get the interference, or you say the emergent properties of things.

    juantard please pray to the holy mother for help. i was baptized a catholic then became an atheist. my faith is very weak but i consider myself a catholic now.

    junatad here pastor manning didn’t talk about black folks (yes he said the word black folks) but the message is neutral in that he speaks directly to you, a high school dropout.

    /t0stJkUWUyM?t=51

  17. JuanP on Wed, 6th Jun 2018 9:34 am 

    Tard, So, you are retarded, functionally illiterate, have no home, no money, no job, no source of income, and you can’t get laid. Wow, you really are someone to look up to! LOL! You will NEVER be able to retire comfortably like I did!

    Five years after dropping out from high school I took the GED, went to college, and had a full honors scholarship and a 4.0 GPA and dropped out again because I realized after interacting with enough people with a higher education that I didn’t want to be like them.

    Being unemployed and homeless is not the same as retiring comfortably at 46, tard.

  18. MASTERMIND on Wed, 6th Jun 2018 9:40 am 

    JuanP

    You are arguing with a bot..Paultard isn’t a human..LOL

  19. fmr-paultard on Wed, 6th Jun 2018 9:45 am 

    juan you don’t have any original idea because you can’t do basic tard research. you lack any nimble intelligence to reject non-data points. i rejected “FBI investigated!” and showed dertard that he has nothing on the green men. to date he has not produced photographic evidence of proving.

    Just becuase FBI investigate doesn’t mean it’s true, doesn’t give it credence, and FBI investigates a lot of things. what more, this is proof of desperation of those who want to believe.

    you have nothing to contribute and you can’t digest supertards’ messages. you can’t be here juan. all you do is pratter on about how “YOUR” life is to be emulated. What about aswang’s life? I can’t be in FL and Phils at the same time.

    Thanks but there’s only one person to be emulated and that’s Muhamad. I lead my own life and i’m not about to emulate anyone.

    No BF or no collecting cans.

  20. JuanP on Wed, 6th Jun 2018 9:45 am 

    Tard “the way to knowledge is two fold. you eitehr come up with the original thoguht or you read about it. i’m a tard so original thoughts are scant but i read about it.”
    Unlike you, I am capable of original thoughts; I have them every single day. I also have no doubt that I have read more than you. I can also write properly, something you obviously can’t do. LOL! Don’t feel too bad about being illiterate; you are just like most Americans. This board is proof of it.

  21. fmr-paultard on Wed, 6th Jun 2018 9:46 am 

    probing

  22. GregT on Wed, 6th Jun 2018 9:53 am 

    “having a college education with major in physics mean i understand basic science.”

    From another one of MM’s often cited links that he’s having so much difficulty comprehending:

    Political instability may be a contributor in the coming decade

    (Turchin 2010)

    “The next decade is likely to be a period of growing instability in the United States and western Europe..”

    “Records show that societies can avert disaster.”

    “We need to find ways to ameliorate the negative effects of globalization on people’s well-being. Economic inequality, accompanied by burgeoning public debt, can be addressed by making tax rates more progressive. And we should not expand our system of higher education beyond the ability of the economy to absorb university graduates. An excess of young people with advanced degrees has been one of the chief causes of instability in the past.”

  23. JuanP on Wed, 6th Jun 2018 10:07 am 

    MM, I don’t care what Tard is; I am having fun. Are you?

  24. JuanP on Wed, 6th Jun 2018 10:11 am 

    Tard “you can’t be here juan.” How on Earth am I here if I can’t? You make absolutely no sense, as usual. Did you mean to say you don’t want me here? There are many who don’t want me here and that is one of the reasons I stay. I have a lot of fun poking tards like you! LOL!

  25. JuanP on Wed, 6th Jun 2018 10:12 am 

    Gotta go! My wife is waiting! 😉

  26. MASTERMIND on Wed, 6th Jun 2018 10:41 am 

    Juanp

    Its okay, greg did the same thing once..i know you boomers aren’t that educated and have a great sense of entitlement.

  27. fmr-paultard on Wed, 6th Jun 2018 10:42 am 

    greg not so many people are as lucky as you having a PhD gf who can teach you geopolitics in bed. for people like myself who can’t score, who is going to teach me? you can’t seriously believe that the solution to political instability is less education. since we’re on the intardweb, i’m sure alt-tard media keeps telling us that higher education are indoctrination centers. so how do you achieve this when the system has an incentive to indoctrinate people to serve the political system.

    you’re not consistent. your intent is malfeasance. the first class of people to be limited in education and fighting (as in shooting and kill) is women.

    where do you people come from? i just walked into the middle of a tard baazar and nobody told me. how cruel

  28. MASTERMIND on Wed, 6th Jun 2018 10:43 am 

    The End of the Oil Age is Imminent!

    Recently, the HSBC oil report stated that 80% of conventional oil fields were declining at a rate of 5-7% per year. This means that there will be an oil shortage of ~30 million barrels per day by 2030 and ~40 million barrels per day by 2040.
    http://www.scribd.com/document/367688629/HSBC-Peak-Oil-Report-2017

    What is mentioned far less often is that annual oil discoveries have lagged annual production since the 1980s.
    https://imgur.com/a/6dEDt

    Now, this problem has nothing to do with the recent decline in the oil price, which started in 2014. This has been an on-going problem for the past 30 years. Now, the IEA is predicting oil shortages by ~2020 due to declining exploration.
    https://www.wsj.com/articles/iea-says-global-oil-discoveries-at-record-low-in-2016-1493244000

    Here, the IEA blames this problem on the low oil price. But, this problem started in the 1980s. The problem is geological: we are running out of conventional cheap oil. Shale and tar sands are not the answer, either. Those resources are far too expensive, compared to conventional oil, because the global economy is based on cheap conventional oil. Expensive oil is not a replacement for cheap oil.

    Based upon the HSBC report and the IEA, the End of Oil Age will start around ~2020: there will be a dramatic economic depression due to exhaustion of cheap oil. This will cause a global economic collapse.

  29. GregT on Wed, 6th Jun 2018 10:59 am 

    ” you can’t seriously believe that the solution to political instability is less education. ”

    I didn’t write the article that MM linked tard, although to anybody capable of original thought, it’s blatantly obvious that the author would be correct.

    If you have a problem with the article, may I suggest contacted the author himself:

    Peter Turchin,
    Department of Ecology and Evolutionary Biology, University of Connecticut, Storrs, Connecticut 06269, USA
    peter.turchin@uconn.edu

  30. GregT on Wed, 6th Jun 2018 11:05 am 

    “The End of the Oil Age is Imminent!”

    The end of the oil age is not imminent MM, but it would appear that we are approaching the peak, which would be the point in time that humanity will be producing the most oil that it ever has.

    I have absolutely no doubt that humanity will still be producing oil 50 years from now, which is about the worst thing possible for the future of the human race, and most all other life forms on this planet.

  31. MASTERMIND on Wed, 6th Jun 2018 11:21 am 

    Greg

    The problem with the world is fools and fanatics are so sure of themselves..And wise people so full of doubts..

    -George B Shaw

  32. GregT on Wed, 6th Jun 2018 11:38 am 

    MM,

    You would be the one who is so sure of himself, even though none of the articles that you continue to link to support your conclusions. I have serious doubts as to the direction that this is all headed in, which is why I have hedged my bets for the best possible outcome, no matter what scenario emerges.

    And MM, wisdom is gained through experience.

  33. MASTERMIND on Wed, 6th Jun 2018 11:51 am 

    Greg

    Are you scared you are going to get your lollipop taken away?

  34. GregT on Wed, 6th Jun 2018 12:18 pm 

    No MM,

    I’ve already stocked up on more than enough lollipops to outlast my natural lifespan. How about you? Or do you still plan on offing yourself if the going gets tough?

  35. Cloggie on Wed, 6th Jun 2018 12:20 pm 

    I would like to see that chart in an annualized percentage..Not a total number.Because any increase you can make the chart go straight up..and if you look at it..the number of passengers during the 1990-2000. is almost double what the 2000-current numbers are.. You idiot..and you cherry picking a stupid statistic anyways. Amsterdam in hub so it will always be busy with people traveling through.

    Amsterdam always has been a hub over the previous decades, that argument doesn’t count. If you analyse the chart you see that the growth rate = steepness curve (“derivative”) is roughly the same between 1990-2000 and 2009-now. The first trajectory was plateaud by the dot-com crisis, the second by the Lehman “sub-prime” crisis (essentially Leroy not paying his mortgage, sssst, too political incorrect to say that too loud).

    Is the growth in Europe and elsewhere for all eternity?

    Nope. The next crisis, short of war, will probably be caused by the West not being able to find sufficient skilled people to keep the industrial machine going (aging of the West as a consequence of free sex –> feminism –> break down family –> plummeting birth rates). That crisis will last much longer than the crises of 2000 and 2008, think decades.

  36. MASTERMIND on Wed, 6th Jun 2018 12:36 pm 

    And when the machine breaks down..We break down..

    https://www.youtube.com/watch?v=fF9JVvveNsM

  37. GregT on Wed, 6th Jun 2018 12:44 pm 

    You aren’t displaying the least semblance of intelligence MM, by continuing to link articles that do not support your conclusions.

    A fool and a fanatic. At least you’ve gotten that much correct.

  38. MASTERMIND on Wed, 6th Jun 2018 12:48 pm 

    Greg

    You can argue with yourself and repeat whatever lie makes you feel better..Claiming that every single one doesnt match is laughable..If you want to lie you should at least argue a few don’t support my conclusions..You are just a fucking gutless coward who can’t handle the conclusions..

  39. MASTERMIND on Wed, 6th Jun 2018 12:53 pm 

    Sleepwalking Into The Next Oil Crisis
    https://www.forbes.com/sites/rrapier/2018/03/23/is-the-world-sleepwalking-into-an-oil-crisis/#509edc8b44cf

    It dOeSn’T cOmE tO tHe sAmE cONcLuSiOn Mm?

    And I helped Robert put that whole article together..If you click on the HSBC study..It links to my personal scribb account and has my initials in the top right corner. (S.D.H).

  40. MASTERMIND on Wed, 6th Jun 2018 12:56 pm 

    Alien apocalypse: Can any civilization make it through climate change?

    https://www.eurekalert.org/pub_releases/2018-06/uor-aac060418.php?utm_source=64&utm_medium=social&utm_campaign=EurekAlert!-(@EurekAlert)&utm_term=EurekAlert&utm_content=AAAS

  41. GregT on Wed, 6th Jun 2018 1:20 pm 

    “You are just a fucking gutless coward who can’t handle the conclusions.”

    I’m not the one who plans on committing suicide MM.

  42. Anonymouse1 on Wed, 6th Jun 2018 2:42 pm 

    Davyturd has gone completely off the rails with his mushmind sock. Not sure why anyone pays this sock of his any sort of attention. It is not as if ‘mushmind’ is any less insane than the delusionist himself is.

  43. Davy on Wed, 6th Jun 2018 3:08 pm 

    Weasel, he is your peer. You both are unemployed millennial school drop outs that create noise instead of contribute. Unlike you I don’t hide. I am real and you are an anonymous pussy afraid to put skin in the game by telling who and what you are.

  44. BobInget on Thu, 7th Jun 2018 10:06 am 

    TRUMP SAVES CHINESE JOBS

    http://www.businessinsider.com/trump-china-trade-fight-zte-deal-reached-2018-6

  45. GregT on Thu, 7th Jun 2018 4:04 pm 

    TARIFFS COULD COST U.S. 400,000 JOBS, ECONOMISTS ESTIMATE

    http://www.newsweek.com/donald-trump-tariffs-trade-job-loss-961988

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