Economy

US Crude Oil Price Set to Stabilize at Higher Levels

US Crude Oil Price Set to Stabilize at Higher Levels

Saudi Arabia is the world's top oil exporter and the de facto leader of the oil producing bloc, OPEC, which has been criticised by Trump for high oil prices.

US President Donald Trump has claimed that he told Saudi Arabia's King Salman he would not last in power "for two weeks" without the backing of the US military.

Trump added that he had spoken to Saudi Arabia's King Salman on Saturday to make the same point, the AFP news agency reported.

While the USA does not have any military bases in Saudi Arabia, neighboring Qatar hosts a large American contingent at Al Udeid Airbase.

Trump didn't elaborate on when he spoke to the king.

Trump did not specify when he made the remarks to the Saudi monarch but they come on the back of increasing oil prices in the US.

The US military was stationed in Saudi Arabia from the first Gulf War against Iraq in 1990 to 2003, when then Secretary of Defense Donald Rumsfeld announced pullout.

Brent crude oil was trading at $84.65 (£65.09) per barrel this afternoon, having dropped from a high of $85.33 earlier in the day and near the four-year high it reached on Monday. This is predicted to show that weekly crude inventories rose by 1,985,000 barrels after the previous week's 1,852,000 increase.

Saudi Arabia's oil output has reached record highs - and the country could further boost production next month as United States sanctions on Iran edge closer.

Trump made Saudi Arabia his first stop on his maiden worldwide trip as president a year ago.

A new report from Reuters says that Russian Federation and Saudi Arabia "struck a private deal" in September to increase production in order to suppress oil prices.

Oil prices have been climbing as buyers have already started steering clear of Iran before the implementation of USA sanctions starting November 4.

Just a few days after the Algiers meeting, Trump blamed OPEC for high oil prices at the UN General Assembly in NY. South Korea and Japan also have the U.S. to thank for stability in the Asian region, according to Trump, who previously demanded increased payments from USA allies to keep American bases in their countries. "Not good. We want them to stop raising prices, we want them to start lowering prices", Trump said.