Financial stocks news: According to informed sources, the US government has quietly asked Saudi Arabia and other OPEC countries to increase crude oil production by about 1 million barrels per day.
The rare US request comes as retail gasoline prices in the country have soared to their highest level in more than three years, and US President Trump has also publicly complained on Twitter about OPEC's policies and rising oil prices. At the same time, the US government has previously decided to re-impose sanctions on Iranian crude oil exports; previous sanctions have reduced the supply of crude oil on the global market by approximately 1 million barrels per day.
People familiar with the matter said that although US lawmakers often criticize OPEC countries when oil prices are high, and the government sometimes encourages OPEC to increase production, it is rare for the US government to raise specific output requirements. Because the dialogue was not made public, people familiar with the matter asked to remain anonymous. It is unclear how the United States specifically requested it.
People familiar with the matter said that some Arab states ’oil ministers debated the US request at a meeting in Kuwait over the weekend. The statement released after the talks promised "to ensure timely and stable supply of crude oil to meet the increase in demand and offset the decline in supply in some parts of the world." Saudi Arabia and Russia proposed a gradual increase in production last month, but other members of OPEC have not yet agreed.