Oil price slashed by Saudi Arabia after Trump slams OPEC monopoly

Oil price slashed by Saudi Arabia after Trump slams OPEC monopoly

But strong personal relationships between the leaders and agreement on the overall deal obscure disagreement on some key details, not least the desirable level for oil prices.

Saudi Arabia has wanted to sell shares in Aramco to bring in foreign investment to diversify its economy, but legal concerns about listing in places like London or NY have presented complications.

Saudi Arabia had political reasons to respond positively to Trump's request, given its animosity to arch-rival Iran, which Trump is trying to bring to its knees through strict new sanctions. Earlier this year, the Saudi Arabian Oil Co., known commonly as Saudi Aramco, agreed to a joint research effort with the Center for Strategic and International Studies, a USA think tank.

LONDON, July 6 (Reuters) - Oil slipped towards $77 a barrel on Friday, under pressure from higher Saudi production and trade tensions between the United States and China, although oil supply disruptions lent support. His latest was a reminder that the USA defends many OPEC members for "very little" money. The objective was to reinvigorate oil prices suffering from a global economic slowdown and a deluge of USA shale oil.

Saudi Arabia and Russian Federation have the lowest production costs and stand as the ones to gain more from a moderate production increase.

"Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction (sic) 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..."

The implication is that Saudi Arabia wants to keep prices around $75 a barrel and sees that level as sustainable in the medium term.

The president's call to "reduce pricing" was an apparent reference for oil producers to churn out more supply in order to contain spiking oil prices.

Trump's plan is to get the Gulf countries to commit to increase output by over two million barrels per day to offset falling supplies elsewhere.

Mr. Trump tweeted Wednesday: "The OPEC Monopoly must remember that gas prices are up & they are doing little to help".

"A key driver of the rise in prices has been the OPEC-Russia deal to cut oil output, compounded by collapsing Venezuelan production and the United States decision to end the Iran deal", National Australia Bank (NAB) said in its July outlook. Without specifying a number, the official press agency said the kingdom would do what is necessary to balance oil prices. Americans pay the second-lowest price per gallon among major economies.

However, the White House rowed back on this claim in a subsequent statement.

West Texas Intermediate crude oil is trading for US$73.09 per barrel. "Every president before Trump has done it and it tends to happen in an election year".

"There are indications that Iranian oil exports have already begun dropping during the first half of June, mostly to Europe".

The Republican president has lashed out at OPEC in recent weeks. Gasoline supplies declined, while distillate stockpiles rose.