ENERGY

Saudi King Salman, Trump agree to support oil market, compensate potential shortage

During the call, the two leaders stressed the need to continue efforts to maintain the stability of oil markets and the growth of the global economy. (Supplied)

Saudi Arabia’s King Salman bin Abdulaziz received a phone call from US President Donald Trump where they discussed ways of supporting the world oil market and bilateral relations between both countries.

During the call, the two leaders stressed the need to continue efforts to maintain the stability of oil markets and the growth of the global economy, and the efforts made by producing countries to compensate for any potential shortages.

Saudi Arabia along with other Organization of Petroleum Exporting Countries (OPEC) and non-OPEC nations, including Russia, had agreed on June 22 to boost production by a combined 700,000 to 1 million barrels a day.

Benchmark Brent crude was trading around $79 a barrel on Friday, and a Reuters poll showed prices look to remain strong for the rest of this year due to supply disruptions in countries including Libya and Venezuela and as the extra oil from OPEC fails to meet rising demand.

Saudi Energy Minister Khalid al-Falih met with US Secretary of State Mike Pompeo in Washington on Thursday to discuss energy security.

The Trump administration is pushing countries to cut all imports of Iranian oil from November when the United States re-imposes sanctions against Tehran, after Trump withdrew from the 2015 nuclear deal agreed between Iran and six major powers, against the advice of allies in Europe and elsewhere.

US officials are pressing allies in Europe, Asia and the Middle East to adhere to the sanctions once they are re-imposed, with the aim of pressuring Iran into negotiating a new agreement.

State Department officials said this week the United States is prepared to work with countries on a case-by-case basis to help them reduce imports of Iranian oil and suggested some exemptions were possible.

Iran’s rial currency has lost up to 40 per cent of its value since last month, when Trump pulled out of the nuclear deal.

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Last Update: Sunday, 1 July 2018 KSA 13:45 - GMT 10:45
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