Saudi Arabia ready to boost oil output

Saudi Arabia’s government said Tuesday that the nation has the capacity to increase oil production.

The statement came days after President Trump claimed that Saudi King Salman had agreed to increase output by as much as 2 million barrels per day to make up for the loss of Iran’s capacity as the United States starts enforcing sanctions.

“The kingdom is prepared to utilise its spare production capacity when necessary to deal with any future changes in the levels of supply and demand,” the kingdom’s Cabinet said in a statement following a Tuesday meeting.

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Trump tweeted on Saturday that he had requested an output increase from Saudi Arabia to balance out Iran’s contribution and turmoil in Venezuela.

“Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference…Prices to high! He has agreed,” Trump tweeted.

Saudi Arabia never confirmed Trump’s claim that Salman made the pledge. And Tuesday’s statement also was not a thorough confirmation.

Trump has been calling on members of the Organization of Petroleum and Exporting Countries and Russia to increase oil production. That coalition late last month agreed to an increase of 1 million barrels per day.