Saudi's Falih tells Trump 'we are taking it easy' - CNBC

Credit: Reuters Studio
Published on February 27, 2019 - Duration: 01:30s

Saudi's Falih tells Trump 'we are taking it easy' - CNBC

Saudi Energy Minister Khalid al-Falih said on Wednesday that OPEC and its partners were "taking it easy", in response to a tweet from U.S. President Donald Trump requesting that oil producers relax their efforts to boost oil prices.

David Pollard reports.

Advertisement

Saudi's Falih tells Trump 'we are taking it easy' - CNBC

A Trump tweet triggered a three and half per cent sell off in Brent crude on Monday ... Telling OPEC to 'take it easy'.... And adding: the world 'cannot take a price hike - fragile!'

The drop in prices was the largest percentage drop this year.

But by Tuesday prices were edging up again ... And on Wednesday, it was OPEC and its partners turn to respond - telling Trump it was 'taking it easy'.

Those words from Saudi energy minister Khalid al-Falih, speaking to CNBC .... He said the 25 countries were taking a - quote - "very slow and measured approach." OPEC agreed in December to reduce supply by a significant 1.2 million barrels per day - for 6 months.

And in early January, Falih said Saudi Arabia's own inventories were on the up.

(SOUNDBITE) (English) SAUDI ARABIA ENERGY MINISTER, KHALID AL-FALIH, SAYING: "There are rising inventories, nothing to be overly concerned but inventories did start rising in the fourth quarter as a result of the increased production we agreed." Prices have been rising: from around 50 dollars a barrel in December, Brent was close to 68 late last week before Monday's tumble.

But current analysis, Falih said, indicated OPEC might need to extend cuts until the end of the year ... OPEC Secretary General Mohammad Barkindo noted the US, as the world's biggest producer, had a strategic stake in the matter.

Trump was welcome to join a dialogue on balancing supply and demand in the oil market, he added.

You are here

You might like