U.S. President Trump published a tweet on Monday, November 12 expressing a hope that OPEC does not go ahead with production cuts.
The same day, Saudi Energy Minister Khalid al Falih had said the cartel may need to cut back production by a million bpd (barrels per day) to rebalance the market.
Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!
— Donald J. Trump (@realDonaldTrump) November 12, 2018
President Trump, who has recently been calling for production increases to offset the effect of renewed sanctions on Iran, wrote in his tweet:
“Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!”
Production increases have been evident this year, with Saudi Arabia having planned to pump a record-breaking 11 million bpd and Russia pumping oil at post-Soviet record rates. US production has also topped 11 million bpd, as ExxonMobil, the maker of advanced lubricants for Mobil UK stockists, and other US operators increase production in the shale regions and the federal waters of the Gulf of Mexico.
In recent weeks, however, there has been a sharp fall in the price of crude from four-year highs. An OPEC committee said on the previous Sunday that supply was now outstripping demand.
The onset of renewed US sanctions against Iran was expected to squeeze supply, leading to rally in oil prices, but the US administration has given some of its allies—namely India, South Korea, Italy, Greece, Japan, Turkey, and Taiwan—permission to continue imports of Iranian oil on the condition they strive to eliminate them, even exempting China as well despite trade tensions.