Oil prices tumbled about 3 percent on Thursday as OPEC reportedly agreed to cut production, but ended its closely-watched meeting without a decision on how much crude the cartel will take off the market. "That is acceptable for most OPEC countries".
OPEC is meeting at its headquarters in Vienna, Austria, on Thursday to decide its production policy.
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures reversed earlier gains and are now trading lower shortly before the U.S. opening. Trump said on Twitter on Wednesday, Xinhua news agency reported.
But if oil producers close the taps, they risk choking off the global economy, which needs affordable oil to keep running. Saudi Oil Minister said that PM Modi in a private meeting had pitched for cheaper fuel prices which strongly shows that he does care about the Indian consumers.
OPEC countries hoping to support the price of oil put off their decision Thursday on how much to reduce oil production until they negotiate with ally Russian Federation on Friday on how much it will contribute to the cut.
The Organization of Petroleum Exporting Countries and its allies are desperate to shore up oil prices after a slump of more than $20 a barrel since October. "Ideally, everyone should join equally".
"I think the likelihood is that they will cut crude production rate, maybe not as dramatically as some people would like, to try and meet a balance between what the USA would like and their own personal interests".
Iran, OPEC's third-largest producer, does not want to be part of the Saudi plan.
His comments came after Iran's Oil Minister Bijan Zangeneh said Tehran will not involve itself in any deal over OPEC production levels as long as it remains under the illegal U.S. sanctions.
Zangeneh said the estimated surplus now on the market amounted to 1.3 to 2.4 million barrels per day. "That is acceptable for most OPEC countries".
OPEC, along with its non-OPEC allies led by Russian Federation, earlier this year decided on increasing their respective production levels, in a bid to cap crude oil prices and bring balance to the market.
Since overtaking Saudi Arabia, many in Washington feel the U.S. no longer needs to shackle itself to Riyadh.
While Saudi Arabia has indicated it is willing to cut production, its decision may be complicated by Trump's decision to not sanction the country over the killing of dissident journalist Jamal Khashoggi.
"The number that we need is going to be less than 1.3 [million]".
However, analysts at ING told AFP news agency that the USA administration could possibly use the murder of journalist Jamal Khashoggi as leverage. The power of OPEC has been diminished, undercutting one of the major geopolitical forces of the last half century.
Most OPEC members felt the same way, but "some members are going along with U.S. policy", Zangeneh said.
Iran has accused Saudi Arabia of being in thrall to the US.
Why is Qatar leaving OPEC?
Doha accounts for only around two percent of OPEC output but the move caught the headlines given the political overtones.
The Saudi energy minister stressed that he doesn't support any exemptions from further slashing of oil output.