AVA- "Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!" tweeted Trump on Monday.
The president made the comment a day after Saudi Energy Minister Khalid Al Falih announced the oil-rich kingdom's decision to reduce exports by about 500000 barrels a day next month. The minister further suggested that members of OPEC may also reduce supply next year "to balance the market".
"The consensus among all members is that we need to do whatever it takes to balance the market," said Al Falih, adding that "if that means trimming supply by a million [barrels per day], we will do it."
Russia, the world's second top oil exporter after Saudi Arabia, welcomed the decision. Russian oil minister Alexander Novak expressed his country's willingness to reduce sales if the matter was decided by a coalition of oil-producers.
The announced reduction, however, imperils Trump administration's domestic and international policies. Facing newly empowered Democrats after the midterm elections, Trump further seeks to ensure low oil prices in order to push for added economic growth. Moreover, having granted oil waivers to many of Iran's top buyers, a reduced Saudi oil output may also further weaken newly imposed oil sanctions, increasing oil prices and making up for Iran's decreased oil sales.
Trump's comments come as US ties with Saudi Arabia have come under increased scrutiny over the killing of Saudi critic and journalist Jamal Khashoggi at the Saudi consulate in Istanbul. Trump announced in October that his administration was considering sanctioning Saudi officials found to be involved in the murder, but has since down played any possible retributions in fear of negative consequences on the US economy.
Wednesday 14 November 2018 01:15