Trump slams OPEC, demands Saudis compensate drop in Iranian exports he caused

US President Donald Trump launched an attack on OPEC during an interview on Sunday, accusing it of "manipulating" the oil market, adding "they better stop it", after demanding they increase production by 2 million barrels per day to counter the heavy sanctions on Iranian oil exports that Trump himself imposed.

Trump also said he wanted the Saudis to compensate for the lower exports from Iran.

His remarks come a day after he made brash statements on Twitter claiming he had agreed with Saudi Arabia to increase oil production, "maybe up to 2,000,000 barrels" in response to global production insecurity.

The White House later reneged on his comments, clarifying that Saudi Arabia's King Salman assured Trump over the phone that Riyadh would be able to dip into oil production reserves in order to stabilise the market if needs be, and also that the two leaders agreed on the importance of a balanced global oil market.

During an interview with Fox News aired on Sunday, Trump repeated his calls for Saudi Arabia to up production to a new record, arguing that it should help the United States lower fuel prices in return for Washington helping Riyadh in its rivalry with Tehran.

"Don't forget the one negative to the Iran deal is that you lose a lot of oil, and they got to make up for it. And who is their big enemy? Iran. OK. You think of it. Iran is their big enemy, so they are going to have to do it," Trump said, referring to Saudi Arabia.

"And I have a very good relationship with the [Saudi] king and with the crown prince of Saudi Arabia and with the others around and they are going to have to put out more oil.”

Oil prices had edged higher as the Trump administration has pushed allies to end all purchases of oil from Iran following the US pulling out of the nuclear deal between Tehran and world powers.

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Prices also rose with ongoing unrest in Venezuela and fighting in Libya over control of that country's oil infrastructure.

Last week, members of the Organisation of the Petroleum Exporting Countries (OPEC) cartel led by Saudi Arabia and non-cartel members agreed to pump 1 million barrels more crude oil per day, a move that should help contain the recent rise in global energy prices.

However, Trump's motive behind lashing out at OPEC is probably linked to the fact that summer months in the US usually lead to increased demand for oil, pushing up the price of gasoline ahead of the midterm elections this year.

Trump wrote on Twitter on Saturday that he had asked the king in a phone call to boost oil production "to make up the difference...Prices to (sic) high! He has agreed!"

A little over an hour later, the state-run Saudi Press Agency reported on the call, but offered few details.

"During the call, the two leaders stressed the need to make efforts to maintain the stability of oil markets and the growth of the global economy," the statement said.

It added that there also was an understanding that oil-producing countries would need "to compensate for any potential shortage of supplies." It did not elaborate.

In a statement issued Saturday night, the White House did not specify that Saudi Arabia would increase production but that "King Salman affirmed that the Kingdom maintains a two million barrel per day spare capacity, which it will prudently use if and when necessary to ensure market balance and stability, and in coordination with its producer partners, to respond to any eventuality."

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The Trump administration has been counting on Saudi Arabia and other OPEC members to supply enough oil to offset the lost Iranian exports and prevent oil prices from rising sharply. But broadcasting its requests on Twitter with a number that stretches credibility opens a new chapter in US-Saudi relations, Halff said.

"Saudis are used to US requests for oil," Halff said. "They're not used to this kind of public messaging. I think the difficulty for them is to distinguish what is a real ask from what is public posturing."

The administration has threatened close allies such as South Korea with sanctions if they don't cut off Iranian imports by early November. South Korea accounted for 14 percent of Iran's oil exports last year, according to the US Energy Department.

China is the largest importer of Iranian oil with 24 percent, followed by India with 18 percent. Turkey stood at 9 percent and Italy at 7 percent.

The State Department has said it expects the "vast majority" of countries will comply with the US request.

Agencies contributed to this report.