Saudi Arabia Promised More Oil. So Why Are Prices Rising?

[Yo_Mama_Been_Loggin]

LONDON — When major oil producers last met in Vienna, they said they would curb rising prices by ramping up production. Why, then, are oil prices still going up?

Officials from the Organization of the Petroleum Exporting Countries, and other major oil producers like Russia pledged last month to increase total output by around 1 percent of the global oil supply. President Trump has pressed the issue further, repeatedly calling for lower oil prices.

Yet prices have remained stubbornly high. The price of Brent crude, the international benchmark, has risen more than 20 percent so far this year, to around $78 a barrel.

Here are some of the factors pushing prices higher.

Risky Producers

Saudi Arabia is under pressure to quickly increase its production of oil, but those increases may not be enough to offset declines in three countries grappling with crises: Iran, Libya and Venezuela.

The Trump administration has softened demands that countries like China and India end all imports of oil from Iran. But Mr. Trump has nevertheless sought to line up support against Tehran as the United States prepares to reimpose sanctions on its energy sector.

At present, Iran exports around two million barrels of oil a day, equivalent to about 2 percent of global supply. But the United States wants to drastically curb Tehran’s ability to sell its natural resources, eating into any additional supply from Saudi Arabia, Russia or elsewhere.

https://www.msn.com/en-us/money/markets/saudi-arabia-promised-more-oil-so-why-are-prices-rising/ar-AAzAg0p?li=BBnbfcN

[shraby]

1. They have to allow for trump's cut of the spoils.

[Wellstone ruled]

2. Head fake,just another bullshit lie.

[pwb]

3. Oil is up over 50% since trump took office.

Remember it was always Obamas fault when prices went up??? Not so with trump.

Also republicans started allowing refined products to be exported for the first time. So much for us being energy independent! It's all bullshit pukes talking out of both sides of their mouths.

[lapfog_1]

4. fracking has pushed the peak of the Hubbert curve to the right

but without more discoveries of so called super giant fields... we will hit peak oil someday if we haven't already.

https://en.wikipedia.org/wiki/List_of_oil_fields

Ghawar (the largest oil field in the world ) is declining around 8% a year... further more, the way the Saudis calculate the reserves may be highly inaccurate.

However, to more expedient explanation for right now is...

Iraq has never recovered to pre 2003 production levels
Venezuela is a complete mess with labor problems, banking problems, etc
Iran, which was emerging as a world oil supplier again, is facing more pressure due to Trump.