Donald Trump says King Salman of Saudi Arabia has told him that the kingdom will increase oil production raising hope that rising oil prices could be reversed.
US President Donald Trump says he has received assurances from King Salman of Saudi Arabia that the kingdom will increase oil production, "maybe up to 2,000,000 barrels" in response to turmoil in Iran and Venezuela.
Saudi Arabia acknowledged the call took place, but mentioned no production targets.
Trump wrote on Twitter that he had asked the king in a phone call to boost oil production "to make up the difference...Prices to (sic) high! He has agreed!"
A little over an hour later, the state-run Saudi Press Agency reported on the call, but offered few details.
"During the call, the two leaders stressed the need to make efforts to maintain the stability of oil markets and the growth of the global economy," the statement said.
It added that there also was an understanding that oil-producing countries would need "to compensate for any potential shortage of supplies." It did not elaborate.
Oil prices have edged higher as the Trump administration has pushed allies to end all purchases of oil from Iran following the US pulling out of the nuclear deal between Tehran and world powers. Prices also have risen with ongoing unrest in Venezuela and fighting in Libya over control of that country's oil infrastructure.
Last week, members of the Organisation of the Petroleum Exporting Countries cartel led by Saudi Arabia and non-cartel members agreed to pump one million barrels more crude oil per day, a move that should help contain the recent rise in global energy prices.
If Trump's comments are accurate, oil analyst Phil Flynn said it could immediately knock $US2 or $US3 off a barrel of oil. But he said it's unlikely that decrease could sustain itself as demand spikes, leading prices to rise by wintertime.