Saudi Arabia acknowledged the call took place, but mentioned no production targets.
"Prices to [sic] high!" Just a week ago, the Organization of the Petroleum Exporting Countries reached an agreement to gradually increase output by about 700,000 barrels a day to stabilize oil prices and offset lost production in Venezuela, where political and oil patch upheaval has led to a drop of exports. "We maintain our Brent crude forecast of $70.80 per barrel for 2018 and $66 for 2019, following the OPEC meeting, though highlight some moderate upside risks for 2018", she said.
A gallon of regular gasoline sold on average in the USA for $2.85, up from $2.23 a gallon previous year, according to AAA.
Trump told King Salman bin Abdulaziz Al Saud that the oil market could use a boost in production when the two men spoke on Friday, the White House said. Prices to (sic) high! The Saudi leader said he was ready to raise output if needed, the White House said in a statement. The two leaders agreed that balancing the global oil market is essential to ensure access to reliable and affordable energy to people everywhere.
It's not yet clear if the increase with which, according to Trump, Saudi Arabia has agreed is in addition to the amount agreed with OPEC, though as Bloomberg reported this week, the state-run oil company Saudi Aramco plans to increase production starting in July to some 10.8 million barrels per day under pressure from the US.
These three countries have around 2.75 million bpd of spare capacity, accounting for around 85 per cent of the OPEC's total, according to International Energy Agency estimates.
The Trump administration is pushing countries to cut all imports of Iranian oil from November when the United States re-imposes sanctions against Tehran, after Trump withdrew from a 2015 nuclear deal agreed between Iran and six major powers, calling it a "defective" agreement. "It is expensive", an unnamed Saudi official told The Wall Street Journal.
Last week during the 174th meeting in Vienna, 15 members of OPEC chose to cut production by 1.2 million barrels a day and maintain the ceiling at 32.5 million barrels a day.
Saudi Arabia has a maximum sustainable capacity of 12 million bpd, but it has never tested that level of production.
"We will be in uncharted territory", Amrita Sen, chief oil analyst at Energy Aspects Ltd.in London, said. "It's certainly easy to imagine a scenario at this point where oil prices hit $100 again this year", said Jason Bordoff, director of the Center on Global Energy Policy at Columbia University.
Since then, though, the Trump administration has upped the ante by signaling a tough line on closing down Iranian production.
While Venezuela's oil output has been in steep decline, the U.S. bringing back sanctions on Iran is seen as the real reason behind oil prices posting massive gains this week. Trump ordered the re-imposition of United States sanctions against Iran that were suspended under the accord.