Saudi Arabia, Russia in secret pact to lower oil prices?

Posted October 04, 2018

US President Donald Trump told his supporters that Saudi Arabia and its king would not last two weeks in power without American support.

"If Iran is under sanctions, the price of oil would rise and Russian Federation and Saudi Arabia can not do anything to supply additional oil to the market", Iran's OPEC governor Hossein Kazempour Ardebili was quoted as saying by SHANA, the oil ministry's news agency.

US crude inventories rose by 907,000 barrels in the week to September 28, to 400.9 million barrels, the American Petroleum Institute said Tuesday, ahead of Wednesday's official supply report from the US Energy Information Administration due at 1430 GMT. Mr. Trump and King Salman last shared a reported telephone call on Saturday, in which they discussed "efforts to maintain supplies to ensure the stability of the oil market and ensure the growth of the global economy", according to the state-run Saudi Press Agency.

Saudi Crown Prince Mohammed bin Salman traveled to Kuwait last weekend to speak with Kuwaiti Emir Sheikh Sabah al-Ahmad al-Jaber al-Sabah, reportedly about increasing oil production. However, analysts are warning prices could go up to $100 a barrel as the world's production is already stretched and Mr. Trump's sanctions on Iran's oil industry take effect in early November.

US crude inventories jumped 8 million barrels last week, quadruple analysts' expectations and the biggest build since March 2017, the Energy Information Administration said.

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But the two nations have struck a private deal to raise oil output to temper soaring prices, Reuters reported.

Trump made Saudi Arabia his first stop on his maiden worldwide trip as president past year.

President Trump said, "we protect Saudi Arabia".

He further added, "we defend many of these nations for nothing, and then they take advantage of us by giving us high oil prices".

He has also pressed other U.S. allies, such as Japan, South Korea and Germany, to take more of the financial burden of their defence. Trump said, in his -N General Assembly speech in NY last month, that OPEC members were ripping off the rest of the world. "Not good. We want them to stop raising prices, we want them to start lowering prices", he said.

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