Saudi king said will boost oil output if needed - White House

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Iran has asked fellow OPEC members to "refrain from any unilateral measures", warning that would undermine the unity of OPEC, following reports that Saudi Arabia has raised its oil production to a record high this month. It did not elaborate.

Donald Trump has said Saudi Arabia agreed to his request to increase oil production by "maybe up to 2,000,000 barrels" to make up for sanctions hitting Iran and Venezuela.

Trump says on Twitter Saturday that he asked Salman to increase oil production "to make up the difference..."

Oil prices have spiked in the past week, and on Thursday crude rose above $74 a barrel for the first time since late 2014.

Vienna-based consultancy JBC Energy said the stronger the implementation and enforcement of USA sanctions, the higher the oil price will go.

Saudi Arabia along with other Organization of Petroleum Exporting Countries (OPEC) and non-OPEC nations, including Russian Federation, had agreed on June 22 to boost production by a combined 700,000 to 1 million barrels a day, so any 2 million bpd-increase would be at least double market expectations.

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Saudi Arabia regulates its oil production in agreement with other members of the Organization of Petroleum Exporting Countries.

"Saudi Arabia does not really like going beyond 11 million barrels a day and has no intention of expanding its current production capacity". Saudi oil officials did not immediately comment.

However, Saudi Aramco CEO Amin Nasser told journalists in India on Monday that the state oil company has spare capacity of 2 million barrels of oil per day.

OPEC announced that it would restore about one million barrels per day to the market, beginning this month. 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.

Saudi Arabia's King Salman bin Abdulaziz Al Saud talks during the opening of 29th Arab Summit in Dhahran, Saudi Arabia April 15, 2018. Expectations that this production increase won't be enough to stabilize these inventory levels are the primary driver behind last week's oil price surge.

"We will be in uncharted territory".

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In the tweet, Trump said the extra Saudi oil would help offset a decline in supply from Iran, after the United States pulled out of the Iran nuclear deal in May and moved to reimpose oil sanctions. "While Saudi Arabia has the capacity in theory, it takes time and money to bring these barrels online, up to one year", she said.

The Trump administration is pushing countries to cut all imports of Iranian oil from November when the U.S. re-imposes sanctions against Tehran, after Trump withdrew from a 2015 nuclear deal agreed between Iran and six major powers.

Washington said last week it was asking customers in Asia and Europe to reduce Iranian oil purchases to zero from November, and that it will not grant any waivers to sanctions.

The Opec oil producers' group agreed to increase output, as did Russian Federation, but this failed to reassure markets.

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.

That might be fine by Trump, who earlier this month blamed rising prices on OPEC, but has fostered close ties to Saudi Arabia.

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