A senior official of the US President Donald Trump telephoned Saudi Arabia and asked for the oil support. However, it was one day before the end of Iran Nuclear Deal.
Donald Trump asked for Saudi Oil Support one day before he announced the end of Iran Nuclear Deal. The US requested Saudi Arabia to keep oil prices and supply stable after the imposition of sanctions on Iran. Saudi Arabia, Iran’s arch rival, has long been a close US ally, but direct pressure on any Organization of the Petroleum Exporting Countries (OPEC) member is rare. The US last pressed Riyadh to increase output in 2012.
Saudi Arabia revealed that although oil prices have increased to over $80 per barrel, the market has yet to recover. Saudi Arabia took this decision because high oil prices could help the stock exchange float of the Saudi Aramco’s stake. The US was worried that the sanctions on Iran would move oil prices up.
The Riyadh’s statement in May to undermine the contract between OPEC and other countries led by Russia to maintain oil supply by about 1.8 million bpd. However, the deal will expire at the end of this year.