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.
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.
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!
— Donald J. Trump (@realDonaldTrump) June 30, 2018
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: