Trump to OPEC: 'Reduce pricing now!'

Anyone trying to take away Iran's oil market would be committing great treachery against Iran and will one day pay for it' Iranian Vice President Eshagh Jahangiri said on Sunday

Iran to allow private sector to export oil, beat US sanctions

The move coincides with United States plans to reimpose economic sanctions on OPEC member Iran, including halting oil exports.

President Trump has been demanding that the United States' closest ally in the Middle East, Saudi Arabia pump up more crude oil to ease pressure on rising price.

West Texas Intermediate crude for August delivery jumped $1.9 to $75.13 a barrel at 9:41 am. on the New York Mercantile Exchange. But broadcasting its requests on Twitter with a number that stretches credibility opens a new chapter in U.S. -Saudi relations, Halff said.

"Saudi Arabia's readiness to utilize its spare production capacity which is estimated at 2 million barrels could spell trouble for oil bulls down the road", Lukman Otunuga, research analyst at FXTM, told Arab News.

USA crude stockpiles are forecast to have declined 5 million barrels last week, according to a Bloomberg survey ahead of government data released on Thursday.

While the White House later backed away from an agreement, the tweet came after oil and gasoline prices surged last week even after Saudi Arabia convinced OPEC to potentially add almost 1 million barrels a day to the market.

Even with an increase in production by the likes of Saudi Arabia and Russian Federation, oil supply is likely to stay largely static because of falling production in Venezuela and global sanctions on Iran.

Oil prices have climbed sharply in recent months, with the price of a barrel hitting a multi-year high of around $78 on Wednesday.

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The statement said the kingdom will coordinate with other producers.

Trump's claim comes after the Organization of the Petroleum Exporting Countries (OPEC), a grouping of oil-producing states that includes Saudi Arabia, already agreed to ramp up production by a million barrels a day at a meeting earlier this month.

The cabinet commended "constructive cooperation between producing countries from inside and outside OPEC, which resulted in the agreement of 25 countries to increase oil supplies, taking into account the current market conditions". That was after Saudi Energy Minister Khalid al-Falih said the kingdom would honor the OPEC decision to stick to a 1-million-barrel increase.

At the heart of Saudi Arabia's dilemma lies its shrinking market share in Asia.

According to the Reuters survey, the Saudi allies in the Gulf-the UAE and Kuwait-maintained steady production in June compared to May, so they have yet to increase production following the Saudi lead.

The premium of near-term USA oil over long-dated contracts increased as analysts forecast continued shrinking supplies in the key Cushing, Oklahoma, supply hub. USA light crude was down 40 cents at $73.75.

The Kingdom is OPEC's (Organisation of Petroleum Exporting Countries) biggest member and analysts say raising output will be hard. OPEC should reject the USA call for a production increase which is "politically motivated against Iran", he said.

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