Abu Dhabi Ready to Pump More Oil Under OPEC Deal

Abu Dhabi Ready to Pump More Oil Under OPEC Deal

Soon after that deal was struck, Trump announced that he had done a separate deal with Saudi Arabia to increase production by "maybe up to 2,000,000 barrels".

Iran had been pushing hard for oil producers to hold output steady as US sanctions are expected to hit its exports.

"In response to the President's assessment of a deficit in the oil market, 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", the statement said.

Two posts on Twitter in June criticised Opec prices for being too high.

Mr Zangeneh said that any increase in the production by any OPEC member country "beyond commitments stipulated in OPEC's decisions adopted in 171st and 174th Meetings would constitute a breach of the agreement".

"Recurring salvos in the trade war and falling asset prices raise the question of how much tariffs could damage the global economy", USA bank JPMorgan said.

Saudi Aramco is pumping 10 million barrels a day and has the capacity to produce 2 million more, according to Saudi Aramco CEO Amin Nasser.

Despite Monday's drop in oil prices, many analysts see oil prices likely to resume their upward climb, given a range of geopolitical factors.

China delays retaliatory tariffs, won't fire 'first shot' in potential trade war
The Trump administration is poised to beginning imposing tariffs on $34 billion in Chinese goods on Friday. The German firm makes Mercedes SUVs in the USA and ships them to China, its biggest market.

This is while world oil prices have climbed higher as the Trump administration has pressured United States allies to end all purchases of oil from Iran.

Oil prices rose strongly last week, with the U.S. crude contract hitting its highest in 3-1/2 years at $74.46.

"With Trump not backing off on Iran sanctions, lot of geopolitical risk is there on crude oil and 1mpbd of Iranian crude oil production could be lost to the market".

"The Libyan power struggle between the Tripoli-based National Oil Corp that is internationally recognised and controls the export sales and the NOC-East group based in Benghazi that now has physical control of the infrastructure. wipes out the planned increase from the OPEC+ coalition", said Stephen Innes, Head of Trading for Asia-Pacific at futures brokerage OANDA in Singapore.

He explained that it was hard to anticipate how the market would integrate with a possible increase in crude oil output from major producers, referring to Saudi Arabia and Russian Federation.

Ardebili also claimed that Trump's words are "discrediting" OPEC.

First, there are technical questions about how far and how fast Saudi Arabia can push its oil fields. Earlier this year, to the chagrin of European partners, Trump said he would pull the United States out of the Iran nuclear agreement secured by world powers. That's knocked about 850,000 barrels a day out of the global oil market. "The Iranian government has a plan".

"As Libyan port closures remove about three-quarters of their 1 million barrel-per-day exports, crude is pushing higher again today", he said.

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