Trump thanks Saudi Arabia for keeping oil prices low
President Donald Trump thanked Saudi Arabia for keeping oil prices down and urged the kingdom to push prices even lower.
“Oil prices getting lower. Great!,” Trump said on Twitter Wednesday. “Thank you to Saudi Arabia, but let’s go lower!”
Oil recovered from a one-year low as industry data showing a drop in U.S. crude inventories allayed some of the concern that a new surplus is amassing in global markets. Futures in New York rose as much as 2.4 per cent after plunging more than 6 per cent on Tuesday.
Crude prices in London and New York collapsed along with equities on Tuesday amid the highest volatility since 2016.
Trump said on on Tuesday that he won’t let the murder of journalist Jamal Khashoggi jeopardize U.S. relations with the Saudis as oil prices may “go through the roof” if the partnership between the two nations breaks. Saudi Arabia had previously sought crude output curbs of about 1 million barrels a day, while Russia signaled the need for a “balanced decision.”
Saudi Arabian oil production surged to a record near 11 million barrels a day this month after the kingdom received stronger-than-usual demand from clients preparing for a disruption in Iranian supplies, according to industry executives who track Saudi output.