Oil rose to its highest price in four years on Tuesday, to above $81 on Brent, after Saudi Arabia and Russia appeared to downplay calls from the US to increase production.
Saudi Arabia said it will boost its crude oil production “in the coming months” as it expects stronger demand, according to recent comments made by Saudi Arabia’s Minister of Energy Khalid al-Falih.
Khalid Al-Falih, Saudi Arabia’s Minister of Energy, Industry, and Mineral Resources.
According to OilPrice.com, Saudi Arabia pledged in June to increase its crude oil production to help rein in prices, but July saw unexpected daily figures at 10.29 million bpd. In August production rose further, to 10.42 million bpd and in September it will be even higher, according to Al-Falih.
President Donald Trump slammed the Organization of the Petroleum Exporting Countries (OPEC) last week, saying the 15-member oil cartel should keep crude prices low because of the military protection the US provided for the region.
“We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now!” Trump wrote on Twitter.
Gasoline prices could be an election issue as the U.S. enters the midterm election season this November. High gas prices would more directly affect lower-income voters in rural and southern states where Trump’s popularly remains relatively high compared to the national average.
Higher prices are more likely the result of U.S. sanctions on Iran than OPEC supply. The Trump administration has told countries like China, India and Turkey to cut all imports of Iranian oil by November 4 when the US re-imposes sanctions against Tehran.
