How does Trump employ Khashoggi's case to push Saudi Arabia to raise oil production?

The issue of the killing of Saudi journalist Jamal Khashoggi has given US President Donald Trump the upper hand to pressure Saudi Arabia to raise its oil production in order to reduce its prices on the market, the Financial Times said in an article.

The newspaper said in an article by writer Nick Butler that the events surrounding the disappearance of Khashoggi has changed the game, the US president set himself a major ally and defender of Saudi Arabia, the United States may insist on changes in Riyadh and the replacement of Saudi Crown Prince Mohammed bin Salman someone else who has a better understanding of US interests In the region.

Butler, chairman of the King's Policy Institute, said US support for Saudi Arabia would continue, but would have the price of increasing production by Riyadh to cover any supply shortfall due to sanctions on Iran, giving the United States full room to take tougher sanctions against Tehran without risking escalation. Oil prices.

"What could Khashoggi's death mean to the oil markets?" The author believes that the Saudi government, dependent on US support, will have no choice but to approve the US demand for crude prices to fall.

He pointed out that the uncertainty about Iranian production and exports is now the main determinant of the oil market and its prices, but the actual impact of any decline in Iranian exports depends on the behavior of other suppliers. So far, it has not been clear whether other Opec members and beyond - like Russia - will increase their production to cover any deficit, as some want to see prices rise even more.

Butler said the oil market's outlook for price risk, based on fear of supply disruptions or decline, could be very high as global demand continues to grow gradually, although the weakness of the Chinese economy suggests that demand growth may be slower Than expected.

The supply of oil seems appropriate to cover the demand, a situation that can be maintained if the Saudis confirm their willingness to increase oil production as much as meets the needs of the market.