How a surprise deal to boost world oil supply could 'stir the pot' in the Middle East, and pressure Saudi's spare capacity
2018-07-01 09:43:04 source：CNBC
July 1, 2018
An impromptu agreement between the United States and Saudi Arabia to add more supply to increasingly tight oil markets is perceived as a test of the kingdom’s ability to pump more crude — and could further antagonize Iran and Venezuela, as both countries grapple with deteriorating conditions in their respective economies.
Barely a week after OPEC's decision to ramp up oil supplies, President Donald Trump surprised the world on Saturday by announcing a new side agreement with the Saudis to smooth over supply shortages from crisis-hit producers, Iran and Venezuela. Both countries resisted the oil cartel's decision last month's agreement, even though OPEC demurred on how much it would boost supply.
The president and King Salman agreed that Saudi Arabia would add more output to a market that’s seen crude shoot to its highest level in more than 3 years above $74 per barrel.
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