Trump says King Salman 'agree' to crash oil prices

"This will push the system close to the limit", and spare production capacity could fall below 2 million barrels a day - a level previously associated with $100 per barrel prices, the group said.

Saudi Arabia said in a statement on the state-run Saudi Press Agency on Saturday that King Salman had received a telephone call from Trump and the two discussed the need to make efforts to "maintain the stability of oil markets".

"It is a strategic move [from Saudi Arabia] to side with Trump at this point and I think what we have seen so far is a combination of an oil price war as well as an indirect diplomatic confrontation between the Iranians and other OPEC members", Mohammed Cherkaoui, professor of conflict resolution at George Mason University, told AL Jazeera from Washington, DC.

As Tehran seeks ways to counter USA sanctions that would restrict its exports and eat into its market share, Iranian Oil Minister Bijan Zanganeh wrote to his UAE counterpart, Suhail al-Mazrouei, who holds the OPEC presidency in 2018, urging him to remind OPEC members to adhere to last month's agreement.

Continuing increases came despite the decision last week by OPEC and its allies to increase production by as much as 1 million barrels per day.

The US president says King Salman agreed, although that claim remains unconfirmed by Riyadh.

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Last week, members of the Organisation of the Petroleum Exporting Countries cartel led by Saudi Arabia and non-cartel members agreed to pump one million barrels more crude oil per day.

Saudi Arabia is the world's biggest exporter of oil and produced about 10 million barrels a day in May.

Many analysts and investors think strict enforcement of US sanctions against Iran will push up prices sharply.

In a meeting between Russian Federation and OPEC earlier this month, Saudi Arabia and Moscow helped to convince the cartel's members to raise production as countries such as the US, India and China - the major consumers of oil - complain about high prices.

"Prices too high! He has agreed!"

Oil prices had weakened over the past month following a call from President Trump for OPEC to increase production in response to rising oil prices.

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Oil analysts said Opec producers may not be able to fully supply the market if Iranian oil is cut from the market. That was after Saudi Energy Minister Khalid al-Falih said the kingdom would honor the OPEC decision to stick to a 1-million-barrel increase.

U.S. officials are pressing allies in Europe, Asia and the Middle East to adhere to the sanctions, which are aimed at pressuring Iran to negotiate a follow-up agreement to halt its nuclear programmes. But he said it's unlikely that decrease could sustain itself as demand spikes, leading prices to rise by wintertime. Prices to (sic) high!

The oil markets were also shaken last week when a senior State Department official said that the United States would ask countries to reduce their purchases of Iranian oil to "zero".

On Saturday, Iranian Supreme Leader Ayatollah Ali Khamenei said the United States was trying to drive a wedge between Iranians and their government using "economic pressure".

"They bring to bear economic pressure to separate the nation from the system ... but six USA presidents before him tried this and had to give up", Khamenei was quoted as saying on Saturday by his website, referring to Trump.

"If this happens, (it) means Trump is asking Saudi Arabia to walk (away) from OPEC", he told Reuters. "This was managed between the two to rob the pocket of rest of the world".

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