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Crude oil price hits $34 as Trump lobbies Saudi Arabia to cut production

Crude oil prices rose above $30 on Friday after indications that oil-producing partners of the Organisation of Petroleum Exporting Countries, also known as OPEC+, would hold a meeting on Monday.

Donald Trump, president of the United States, had said a production cut as high as 15 million barrels may be implemented.

He, however, did not indicate if the US would join in cutting production.

“Just spoke to my friend MBS (Crown Prince) of Saudi Arabia, who spoke with President Putin of Russia, & I expect & hope that they will be cutting back approximately 10 million barrels, and maybe substantially more which, if it happens, will be great for the oil & gas industry,” he tweeted.

“Could be as high as 15 million barrels. Good (great) news for everyone.”

After Trump tweeted, the Kingdom of Saudi Arabia released a statement calling for an urgent meeting of OPEC+ and other countries to reach a “fair agreement”.

“The Kingdom of Saudi Arabia would like to draw attention to the efforts it has exerted during the past period to reach an agreement within OPEC + group to restore equilibrium in the oil market as it has garnered the support of as many as 22 countries within OPEC + group, but it was not possible to reach an agreement due to lack of consensus,” the statement published by Saudi press agency read.

“Today, the Kingdom calls for an urgent meeting for OPEC+ group and other countries, with the aim of reaching a fair agreement to restore the desired balance of oil markets.

“This invitation comes within the framework of the Kingdom’s constant efforts to support the global economy in this exceptional circumstance, and in appreciation of President Donald Trump of the United States of America’s request and the US friends’ request.”

Brent crude price had fallen below $30 after an OPEC meeting deadlock resulted in a price war between Saudi Arabia and Russia.

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