The Organization of the Petroleum Exporting Countries (OPEC) and its non-member ally, Russia, clarified on Sunday that they found no reason for an immediate, additional increase in crude output despite the call from US President Donald Trump to raise the bar on production while keeping the prices down.
Ministers of both OPEC and non-OPEC members gathered for the 174th Meeting in Algiers on Sunday. According to Reuters, the event concluded with no official recommendation from the organization for any additional supply boost on oil since it has already met the demand for the number of barrels requested.
In a statement given by Saudi Arabia's oil minister, Khalid al-Falih, at a news conference held after the forum, the Gulf State and the rest of its allied governments has already reached its quota for this quarter and that it should adequately supply the request of all its clients.
The crude committee however assured that a steady rise in oil output should be expected to pick up steam in the next five years. It is predicted though that the demand for crude oil will likely to decline, and this is despite the fact the global economic expansion pushes countries to buy more energy to fire up its industries.
As further revealed by OPEC, this noticeable dip in crude demand can be tied to the strong supply coming from non-OPEC suppliers with the US oil leading the pack.
Trump's demand for OPEC to pump more oil is seen as a huge factor which could lower down crude prices.
OPEC Denies Influence on Oil Price Increase
Last week, Trump sent out a Twitter message believed to be directed to Saudi Arabia, which happens to be the largest OPEC producer in the group. In his tweet, the POTUS implied the producer's involvement in recent price increases.
Benchmark Brent oil, for example, has peaked at USD$80 per barrel this September, which prompted Trump to pressure the organization to hit on the brakes.
In his own words, Trump reiterated that it is the US that protects the oil-producing countries of the Middle East, with Saudi included. As claimed by the president, these entities wouldn't be safe if not for the presence of the US forces in the region.
True enough, Trump's call seemed to hit home as it was reported last week that the feverish prices for each oil barrel somehow abated following the Twitter message.
However, OPEC insisted that it has nothing to do with the oil price hike in the first place. As what al-Falih told reporters, the organization doesn't have an influence on this issue and that it's actually Trump's fault for causing the decline in oil exports after it decided to sanction Iran.
