Saudi Arabia’s oil production hit an all-time high in November after several customer countries requested the Saudis help combat rising oil prices, Reuters reported.
Saudi Arabia’s state-owned oil company Saudi Aramco hit 11.1-11.3 million barrels per day in November, an oil industry source told Reuters. The Saudi oil surge came while millions of Americans were celebrating Thanksgiving, one of the busiest travel times in the U.S.
Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let’s go lower!
— Donald J. Trump (@realDonaldTrump) November 21, 2018
U.S. President Donald Trump credited Saudi Arabia after gas prices dropped nearly $30 in time for the holiday. (RELATED: Trump Touts ‘Oil Prices Getting Lower’ As Millions Hit The Road For Thanksgiving)
Trump has leaned on Saudi Crown Prince Mohammed bin Salman to increase oil production for months. Trump also slammed the international oil cartel Organization of the Petroleum Exporting Countries (OPEC), of which Saudi Arabia is a leading member, for cutting oil production to raise prices.
Bin Salman has steadily increased oil production for several months in preparation for U.S. sanctions to drop on Iran, which they did on Nov. 5. Saudi Arabia had expected and prepared for stronger sanctions, however, and the price of oil plummeted after the Saudi’s oil hit the market, according to Reuters.
OPEC, led by Saudi Arabia and Russia, cut oil production in January 2017. The cartel used production quotas to dry up an international oil glut keeping prices low and hurting OPEC’s ability to influence the worldwide oil market.
Leaders from Saudi Arabia, Russia and the U.S. will meet at the G20 summit in Argentina later this week. Petro-states such as Russia and Saudi Arabia will likely discuss potential oil supply cuts to raise the international price of oil again, according to Reuters.
Trump has openly criticized the coordinated action of OPEC countries. The Justice Department is reportedly seeking a way to take action against the oil conglomerate and break it up as the U.S. federal government has done to corporate monopolies and oligopolies in the past.
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