Trump's Request for OPEC to Max-Out Oil Output May Backfire - Bloomberg:
If OPEC is the central bank of oil, then the Trump administration is commanding it to run the printing presses at full speed.
The U.S. State Department took the unusual step of issuing a statement on Wednesday asking the cartel to boost production by tapping the supply buffer it maintains in case of unexpected disruptions. It even gave a figure for how much more the group could pump -- 1.4 million barrels a day.
If the Organization of Petroleum Exporting Countries were to fill this request -- and Saudi Energy Minister Khalid Al-Falih said on Thursday that it could -- the oil market would be in uncharted territory. Even during the worst crises of the past two decades, including the U.S. invasion of Iraq and Libya’s civil war, the cartel has never been forced to pump flat out.
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