US Sanctions Loom as Russia and Saudi Arabia Increase Oil Production - News Stream
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In the pipeline this week
On Wednesday Saudi Arabia and Russia agreed to increase oil output from September to December after officials struck a deal last year before consulting with other producers, including the rest of the Organization of the Petroleum Exporting Countries (OPEC).
This comes ahead of U.S. sanctions against Iran's oil sector which are set to kick in from Nov. 4 and which many analysts expect to knock around 1.5 million BPD of supply out of markets.
There is increasing concern that high oil prices and weakening emerging market currencies are creating a toxic inflationary mix that could erode fuel demand and economic growth.
Oil price gains are hitting the pocketbooks of American drivers, which is particularly risky ahead of November midterm elections. Trump tweeted in September: "We protect the countries of the Middle East, they would not be safe for very long without us" Trump has increasingly dangled the US's military relationship with Saudi Arabia as incentive for the country to keep prices down, saying Saudi Arabia's king "might not be there for two weeks" without U.S. military support.
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