On Saturday, White House said, Donald Trump, has been promised by the leader of Saudi Arabia that if required he will boost oil production and the country that has over 2 million barrels per day of the spare capacity that is available.
Trump told King Salman bin Abdulaziz Al Saud that the oil market will supply more of oil production on Friday when the men were speaking to each other. The Saudi leader was ready to raise the output if it will be required.
"King Salman affirmed that the Kingdom maintains a two million barrel per day spare capacity, which it will prudently use if and when necessary to ensure market balance,"
White house undercut a tweet by Trump in the day where he wrote about the Saudi Arabia that has definitely agreed to the more oil production.
Trump tweeted, "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 ... Prices too high! He has agreed!"
The tweet came early in the morning where Trump tweet that Saudi will provide an extra oil that can help to offset a decline in the supply for Iran. The US even pulled out their nuclear deal with Iran in May and moved to the repose oil sanctions.
There was no clarity that there was an extra Saudi production as per the expecting or by when.
Amrita Sen of consultancy Energy Aspects said, "We will be in uncharted territory. While Saudi Arabia has the capacity, in theory, it takes time and money to bring these barrels online, up to one year,"
The OPEC, Organization of Petroleum Exporting Countries, said a week ago and fellow producers including Russia that has agreed to boost the production of supplies, easing curbs in the place since the start of 2017.
Trump and the Saudi king has emphasized on the oil production to stabilise the oil market to compensate for the potential shortage.
As per the reports, Saudi media did not mention any intention by Arabia to raise 2 million bpd. Production. Even Saudi Oil officials have not commented immediately on this statement.
"If this happens, (it) means Trump is asking Saudi Arabia to walk (away) from OPEC," "The market will go up to $100 I am sure as Saudi Arabia said they will plan an increase for July. ... This was managed between the two to rob the pocket of rest of the world,” Iran's OPEC governor, Hossein Kazempour Ardebili