As Saudi oil output nears record, Trump tweets that Saudi king agrees to pump more

Doug Stanglin | USA TODAY

Amid reports Saudi Arabia's oil output for June is at near-record levels, President Trump tweeted Saturday that Saudi King Salman "agreed" in a phone conversation to increase oil production to roll back oil prices.

Oil production by the countries of the Organization of the Petroleum Exporting Countries has dipped because of supply disruptions in Iran, Venezuela and Angola, driving prices to near $80 a barrel.

"Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction 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 high! He has agreed!" Trump tweeted.

It was unclear whether the Saudi king "agreed" to increase production or "agreed" prices were too high.

The Saudi government said on its official website that the two leaders had spoken about oil production, but avoided suggesting any specific deal had been struck.

Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction 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 high! He has agreed! — Donald J. Trump (@realDonaldTrump) June 30, 2018

"During the call, the two leaders stressed the need to make efforts to maintain the stability of oil markets and the growth of the global economy, and the efforts of producing countries to compensate for any potential shortage of supplies," the Saudi government said in a statement.

Although Trump suggested the king was responding to his appeal, the president's tweet comes one day after a Reuters survey showed the kingdom had already increased production in June by 700,000 barrels per day, to 10.7 million bpd, very close to its highest-ever production.

Output is expected to rise to 11 million barrels in July, according to Reuters.

The news agency also reported Saturday that Saudi Energy Minister Khalid al-Falih said the kingdom will increase output by hundreds of thousands of barrels, with exact figures to be determined later.

in addition, Saudi production traditionally goes up in the hot summer months to supply domestic power plants, Reuters notes.