Trump says Saudi Arabia has agreed to increase oil production

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Saudi authorities acknowledged that the two leaders had a conversation but had no immediate comment on its substance.

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 to [sic] high!"

Saudi Arabia said in a statement on the state-run Saudi Press Agency on Saturday that King Salman had received a telephone call from Trump and the two discussed the need to make efforts to "maintain the stability of oil markets". So why is the Canadian dollar still so low? It did not elaborate.

Iran has faced mounting economic woes since US President Donald Trump announced in May that Washington was withdrawing from the 2015 nuclear deal with world powers, negotiated under his predecessor president Barack Obama. Oil prices also have risen with the ongoing unrest in Venezuela, as well as with fighting in Libya over control of that country's oil infrastructure.

The OPEC cartel recently agreed to pump 1 million barrels more crude oil per day.

"This is a situation where U.S. shale oil production itself has dropped in the past few months and that drop in the inventory has pushed oil prices up", Jordan said.

USA crude production slipped 2,000 barrels per day (bpd) to 10.467 million bpd in April from the highest on record in March, the Energy Information Administration (EIA) said.

Iran’s Rouhani: Iran will not give in to pressure from Trump
He also urged for "honest talks" between the two nations, which Ahmadinejad said would be of interest to both. On Monday traders massed outside parliament to complain about the plunge to record lows of Iran's currency.

Trump is trying to exert maximum pressure on Iran while at the same time not upsetting potential US midterm voters with higher gas prices, said Antoine Halff, a Columbia University researcher and former chief oil analyst for the International Energy Agency.

Many analysts and investors think strict enforcement of USA sanctions against Iran will push up prices sharply.

Benchmark Brent crude LCOc1 was up $1.54 at $79.39 a barrel after jumping as much as $1.85 to session high of $79.70.

The world's top oil exporter plans to pump as much as 11 million barrels of oil per day (bpd) in July, an oil industry source told Reuters this week, after OPEC agreed with Russian Federation and other oil producers to raise output by about 1 million bpd. Trump's tweet offered no timeframe for the additional 2m barrels - whether that meant per day or per month.

An oil tanker is loaded at the Ras Tanura refinery and terminal operated by Saudi Aramco in Saudi Arabia.

The United States has told allies to cut all imports of Iranian oil from November, a senior State Department official said on Tuesday. But broadcasting its requests on Twitter with a number that stretches credibility opens a new chapter in U.S. -Saudi relations, Halff said.

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