Oil prices sharply dropped down on Monday amid the US president Donald Trump announcement to increase oil production in Saudi Arabia and the response of Iran’s government.
September Brent futures were $1.08 or 1.36% down, at $ 78.15 for a barrel on Monday morning. At the end of ICE Futures trading session on Friday evening, the contracts price up by $1.62 or 2.1 %, to $ 79.23 a barrel.
August WTI futures were 90 cents or 1.21% down, at 73.21 on Monday morning. The contract price went up by 70 cents or 1%, to $ 74.15 a barrel at the end of NYMEX online trading session on Friday evening.
The US president Donald Trump said Saturday that he had received assurances from King Salman of Saudi Arabia to increase oil production, “maybe up to 2,000,000 barrels”. The White House changed the statement later, specifying that “King Salman affirmed that the Kingdom maintains a two million barrel per day spare capacity, which it will prudently use if and when necessary to ensure market balance and stability”.
In the meanwhile, Iran asked OPEC member-countries to avoid any unilateral measures, warning to exit the deal.
“Regrettably, unilateral behaviours in production increase by some Member Countries is weakening the very foundation of our Organization.”, Iranian Oil Minister Bijan Zangeneh wrote in his letter to OPEC President .