Iran's OPEC Boss: Trump's Tweets Have Added $10 to Oil Prices

Oil prices climb on tightening US market

Trump: Gas prices are up and OPEC ‘doing little to help’

Trump again accused the OPEC of driving fuel prices higher on Wednesday, and urged U.S. allies such as Saudi Arabia, to pump more if they wanted Washington to continue protecting them against their top foe, Iran.

The OPEC Monopoly must remember that gas prices are up & they are doing little to help.

Trump indirectly linked USA foreign policy to his demand, saying the US defends some oil producing countries "for very little" money. This must be a two way street. OPEC members agreed June 23 to increase crude oil output by pumping 1 million barrels more daily, but it is still unclear how much of the oil produced would ease off prices in a period-the northern hemisphere's summer-generally associated with high oil demand.

But not all analysts foresee crude prices remaining at current levels: NAB said its oil price forecasts "point to Brent spending the next few months largely in the mid-to-high $70s [per barrel] range, although meaningful OPEC-Russia output increases could push prices lower later in the year and higher USA shale production should impose an upside limit on West Texas Intermediate".

Oil will soon cost $100 per barrel due to supply disruptions caused by the United States President, Donald Trump, Iran's representative at the Organisation of Petroleum Exporting Countries, Hossein Ardebili, has said. Your tweets have driven the prices up by at least $10 per barrel. "Please stop this method".

The US President used his usual American foreign policy card, threatening to withdraw American support from "those countries" that are "manipulating" oil prices. If the USA succeeds in blocking Iran from exporting its oil, OPEC would struggle to offset the missing barrels. The outage at the 360,000 barrels per day (bpd) Syncrude facility in Canada has contributed to a sharp reduction in the discount for USA crude versus Brent crude over the past month.

West Texas Intermediate crude oil is trading for US$73.09 per barrel.

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US tariffs on $34 billion in Chinese imports took effect as a deadline passed on Friday and Beijing has vowed to respond immediately in kind, setting the two world's biggest economies on a path toward a full-blown trade conflict.

At the time, Trump tweeted that he spoke with Saudi Arabia's King Salman to ramp up oil production to lower prices.

China says it will retaliate, and U.S. President Trump said on Thursday he may ultimately impose tariffs on more than a half-trillion dollars worth of Chinese goods.

OPEC agreed with Russian Federation and other oil-producing allies last month to raise output from July, with Saudi Arabia pledging a "measurable" supply boost but giving no specific numbers. Trump seems to want to have his cake and eat it; he wants to cut Iran's oil export to zero and keep the price of gasoline at a moderate level. The Saudis have increased oil production, following an OPEC meeting last month, but it hasn't been enough to overcome the effects of reduced supplies from other producers.

Brent crude futures lost 85 cents to settle at $77.39 a barrel. That means there's a shrinking buffer to protect against the shocks like the eventual loss of Iranian oil or a hurricane in the U.S. Gulf of Mexico.

This was on top of the even bigger draw of 9.228 million barrels of crude oil reported for the week-ending June 22. Oil production in the United States already exceeds 10 million barrels a day and independent companies have strengthened operationally and financially.

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