President Trump has reportedly asked OPEC and Russia to increase crude oil production by 1 million barrels per day as prices at the pump in the United States have climbed to the highest in three years.
The news comes from unnamed sources cited by Bloomberg, so there is nothing official but it is interesting that the amount of increase reportedly requested by the U.S. President is the same as earlier reports suggested is being discussed by Saudi Arabia and Russia.
In fact, the number of reports about possible production raises is quite high, with all citing unnamed sources giving various figures.
While the sources that Bloomberg talked to said the Saudis and their partners from the Gulf wanted to raise production modestly, by about 300,000 bpd, which is the cut Russia agreed to make on its daily output, Russia itself wants a higher raise, of 800,000 bpd. Other unnamed sources, quoted by Reuters this time, however, said both OPEC and Russia were looking at 1 million bpd as the amount of supply to add to global markets.
Meanwhile, amid all the reports, OPEC’s oil ministers are keeping surprisingly quiet about anything to do with production. Usually, this or that minister would drop a hint that would send prices higher or lower immediately even if it is too general to make any concrete conclusions.
Saudi Arabia’s Khalid al-Falih excels at hint-dropping, while his Russian counterpart Alexander Novak is the king of vague general remarks.…