Saudi Arabia not confirming Trump's 2M barrels

Saudi Arabia not confirming Trump's 2M barrels

But in a statement Saturday evening, the White House said King Salman bin Abdulaziz affirmed that Saudi Arabia has 2 million barrels per day (bpd) of spare production capacity "which it will prudently use if and when necessary to ensure market balance and stability, and in coordination with its producer partners, to respond to any eventuality".

"This will push the system close to the limit", and spare production capacity could fall below 2 million barrels a day - a level previously associated with $100 per barrel prices, the group said.

Saudi state media reported that during the call, the Saudi king and Trump emphasized the need to preserve oil market stability and efforts of oil-producing countries to compensate for any potential shortage.

Saudi Arabia's official government press agency gave a more ambiguous description of the king's discussion with Trump.

But destabilizing OPEC could throw global oil markets into even greater turmoil than they've seen since Trump's election.

The Trump administration is pushing other countries to cut all imports of Iranian oil, while it slapped further trade sanctions on Venezuela last month. The agency didn't say the leaders agreed and didn't make any reference to 2 million barrels.

Saudi King Salman speaks during a meeting of the Saudi-Iraqi Bilateral Coordination Council in Riyadh on October 22, 2017.

Saudi Arabia may increase its output by up to 1 million gallons of oil a day due to OPEC talks last week - not because of a request by Trump, said Bloomberg.

Saudi Arabia is the world's biggest exporter of oil and produced about 10 million barrels a day in May. Iran has accused Trump of trying to politicize OPEC and said it was USA sanctions on Iran and Venezuela that helped push up prices.

His comments come as oil prices have edged higher as his administration pushes US allies to end oil purchases from Iran. That was after Saudi Energy Minister Khalid al-Falih said the kingdom would honor the OPEC decision to stick to a 1-million-barrel increase.

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.

Oil prices spike 13% in a week. The State Department is now insisting that other countries stop importing Iranian oil - or face sanctions from Washington.

The president's citation of high prices and "turmoil and dysfunction" in Iran and Venezuela has raised eyebrows among critics who have pointed to his own actions as causes.

Meanwhile, Leader of Iran's Islamic Revolution Ayatollah Seyyed Ali Khamenei slammed all-out United States economic and political measures against Tehran in a Saturday address, describing them as futile efforts to turn Iranians against the Islamic Republic.

"They bring to bear economic pressure to separate the nation from the system ... but six US presidents before him tried this and had to give up", Khamenei was quoted as saying on Saturday by his website, referring to Trump.

Non-OPEC member Russian Federation on June 23 also backed the effort, capping a week of tense diplomacy for the grouping that averted a damaging rift between arch foes Iran and Saudi Arabia. "This was managed between the two to rob the pocket of rest of the world", he said.