{ } 'Saudi Arabia has agreed to boost oil production' - Trump assures amidst increasing prices - Aawaaj News

‘Saudi Arabia has agreed to boost oil production’ – Trump assures amidst increasing prices

Oil prices are rising again – globally. Price increase can be attributed to supply disruptions as United Stated and its key allies proceed to halt oil purchases from Iran and Venezuela – as part of US led economic sanctions. A recent report has stated that India may join the list of halting purchase of Iranian oil from November, unlike before 2015, where India continued to buy oil from Iran amidst sanctions. U.S. push to curb countries’ imports of Iranian oil comes after President Donald Trump withdrew from a 2015 deal between Iran and six world powers and ordered a reimposition of sanctions on Tehran.

Rising price of Brent Crude (Image: Business Insider)

Iran and Venezuela are some of the biggest oil exporters in the world – naturally halting purchases from them is going to disrupt global oil supply. Prices are to rise, unless supply is increased by other OPEC countries, thus President Trump has approached Saudi Arabia – to increase oil productions.

Trump on Saturday tweeted that he has spoken to King Salman of Saudi Arabia to boost oil supply and that he has agreed.

According to Associated Press, Saudi Arabia confirmed the conversation took place however did not state any production targets.

Aawaaj had done a short video to explain the reason behind the rise of oil prices. Watch:



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