OPEC disregards threat of U.S. cutting oil imports

OPEC and Oil imports

OPEC’s two biggest suppliers to the United States pay no heed to a pledge by President Donald Trump to end dependence on oil from OPEC. According to the group, the largest economy in the world, the United States, would still need to import crude from abroad.

Khalid Al-Falih, Saudi Arabia’s Energy and Industry Minister sad that the us is “closely integrated in the global energy market”.

At a meeting of oil producing countries in Vienna Al-Falih said that “The positions that the U.S. and Saudi Arabia take in global energy are very important for global economic stability”. He added that Saudi Arabia was looking forward to working with the Trump administration.

Trump said after his inauguration on Friday that he was “committed to achieving energy independence from the OPEC cartel and any nations hostile to or interests,” by taking advantage of “vast untapped domestic energy reserves”.

Around an average of 1.08 million barrels per day are exported by Saudi Arabia to the United States last year while Venezuela ships around 733 barrels per day and Iraq exporting 400,00 barrels per day.

OPEC’s secretary-general Mohammad Brakindo said on Sunday that the group is waiting for a new U.S. energy secretary to take office to learn more about trump’s energy policies.

Crude prices rose to an 18-month high of more than $58 a barrel after OPEC and several non-members agreed to end two years of unlimited production and instead cut output. Prices have since slipped about 5 percent from that peak as traders await proof that the producers will follow through.

The new administration said that it would still “work with our Gulf allies to develop a positive energy relationship as part of our anti-terrorism strategy.”

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