Published: Thu, October 04, 2018
Markets | By Erika Turner

Saudi King wouldn't last 'two weeks' without USA support

Saudi King wouldn't last 'two weeks' without USA support

"I love the king, King Salman, but I said, 'King, we're protecting you, '" Trump says at a campaign rally in MS, without elaborating on when he spoke to King Salman bin Abdulaziz.

Saudi Arabia has always been a major buyer of US weaponry, spending billions of dollars on advanced systems, a point Trump was keen to make when Saudi Crown Prince Mohammed Bin Salman visited the White House in March. Commodity trading company Trafigura forecast Brent crude oil could hit $100 by the end of the year, and Bank of America isn't far behind with a $95 price forecast, although for the second quarter of 2019.

The climb in oil prices comes even as Saudi Arabia reported, according to Reuters, that its oil production is near a record.

The call grabbed the attention of oil traders and hedge funds, who are watching closely for any signs that the USA might take action against Saudi Arabia or other members of OPEC after Trump used his address at the United Nations General Assembly in NY on September 25 to hammer home those views.

"Mr Trump is very angry with some countries for not being able to replace the Iranian oil and has expressed this anger in his remarks to the Saudi king and to OPEC for not increasing output", he said.

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Oil prices have risen in recent weeks ahead of United States sanctions on Iran - set to be imposed early next month. Trump told a campaign rally in the US state of MS on Tuesday night. Would you say they are rich? This is predicted to show that weekly crude inventories rose by 1,985,000 barrels after the previous week's 1,852,000 increase.

Trump has also pressed other U.S. allies, such as Japan, South Korea and Germany, to take more of the financial burden of their defence.

He further added, "we defend many of these nations for nothing, and then they take advantage of us by giving us high oil prices".

Saudi Arabia welcomed Mr. Trump for his first overseas trip as president. "We want them to start lowering prices and they must contribute substantially to military protection from now on".

But despite the Trump's comment, his administration has kept a close relationship with the Saudi kingdom. Not good. We want them to stop raising prices.

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