Trump Requested Saudi Oil Support Before Exiting JCPOA

One day before Donald Trump's exit from the JCPOA, a senior US official contacted Saudi Arabia by phone, asking the country to help stabilize oil prices if this decision led to turmoil in the oil market. Reuters reported on Thursday, June 7, that Riyadh, Tehran's main rival in the region, has always been a close ally of the US, but direct pressure on an OPEC member regarding oil policies is unprecedented. The US last pressured Saudi Arabia to increase its oil production in 2012. Saudi Arabia stated that despite oil prices exceeding $80, the highest level since 2014, the market had not yet emerged from a prolonged recession. Before the US call to Riyadh, officials from that country said it was still too early to increase production. Sources in Saudi Arabia told Reuters that one reason for the country's willingness to raise oil prices is that the stock price of the state oil company Saudi Aramco, which is set to go public in 2019, would increase. Consequently, the Saudi government's decision to announce hours after the US exit from the JCPOA that it was willing to increase oil production to prevent market turmoil surprised OPEC members. Three informed sources said that hours before Trump's announcement to exit the JCPOA, a senior US official contacted Saudi Crown Prince Mohammed bin Salman to ensure that Washington could count on Riyadh's assistance in this matter. These sources indicated that Washington was concerned that exiting the JCPOA would reduce Iranian oil exports and consequently lead to an increase in oil prices. A White House spokesperson declined to comment on the phone call between Washington and Riyadh. A senior Saudi official also did not confirm the call but stated, 'The US decision regarding the JCPOA was communicated to us before it was announced. We are always in contact with US officials regarding oil market stability.' The announcement of this decision by Saudi Arabia in May jeopardizes the agreement among OPEC members and its allies, initiated by the Russian government. In this agreement, which took place in January 2017 and will continue until the end of this year, the signatory countries are to reduce their daily production by 1.8 million barrels to help increase oil prices. Reuters adds that OPEC members are set to meet on June 22, and any changes in the organization's production levels require the consent of all members. Iranian Oil Minister Bijan Zanganeh stated last week that he does not agree with increasing oil supply to the global market. An OPEC source familiar with Saudi policies said that Riyadh and Washington had negotiated oil policies before the US exit from the JCPOA. Since the lifting of international sanctions in January 2016, Iran has been unable to increase its oil production to four million barrels per day due to a lack of new extraction plans. Iran will not benefit much from the policy of increasing production due to production limitations and may have to sell its current production at lower prices. Another OPEC source stated that increasing production at the request of the US is contrary to the organization's charter and 'some member countries will not accept it.'