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Industry experts and even the Organization of Petroleum Exporting Countries are acknowledging that President Trump's tweets calling for more oil production may be having an effect.
Trump warned OPEC last month that "oil prices are artificially very high! No good and will not be accepted!"
On Friday, it became clear that OPEC listened.
Saudi Arabia, the largest member of OPEC, and Russia, the leader of non-OPEC countries that are cooperating with the oil group to restrict supply to boost prices, said they are prepared to change course and increase production.
OPEC Secretary General Mohammed Barkindo said Trump’s prodding had inspired the idea of upping oil production.
“We pride ourselves as friends of the United States,” Barkindo said during a panel with the Saudi and Russian energy ministers.
One expert said Trump's direct message helped spur action. “The president's tweet was speaking truth to power to the oil producing countries,” said Amy Myers Jaffe, a leading expert on global energy policy at the Council on Foreign Relations.
The move would be a dramatic about-face for Saudi Arabia and Russia, which had been discussing extending by 10 to 20 years its agreement to cut oil supplies.
Prices have rallied in recent months, as some OPEC countries restricted production more than the amount targeted under the agreement, and other supply disruptions have occurred. While higher oil prices benefit U.S. producers and help advance the president’s “energy dominance agenda,” Trump has noticed the corresponding spike in gasoline prices.
The Trump administration has worked to bolster ties with Saudi Arabia, as the two powers pursue shared goals in the Middle East, such as combating Iranian influence.
https://www.washingtonexaminer.com/policy/energy/trumps-tweets-could-prompt-opec-to-boost-oil-production
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