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Trump to OPEC: 'Reduce pricing now!'

09 July, 2018, 06:46 | Author: Shawna Walton
  • US oil touches $75 amid fears Iran will block Middle East shipments

That may reduce the pressure on Saudi Arabia to keep oil prices high, said John Kilduff, partner at energy hedge fund Again Capital LLC in NY.

In response, Ardebili warned, "Your tweets have driven the prices up by at least $10 per barrel". U.S. crude rose above US$75 a barrel for the first time since 2014. Trump, meanwhile, clearly thinks they should be stabilised at a significantly lower level.

Trump's administration has been a firm supporter of Saudi Arabia, signing a $110 billion defense deal during his first full year in office. However, high prices also hit businesses and consumers with more costs that are a drag on the USA economy.

Iranian Petroleum Ministry has said that there has been no major change in Iran's production and export of crude oil despite U.S. sanction threats. The president said the USA defends many OPEC member states, insinuating that as a returned favor, these nations should cave to Washington's demands.

The U.S. Navy stands ready to ensure freedom of navigation and free flow of commerce, a spokesman for the U.S. military's Central Command said.

"Considering that oil demand has risen by almost 13 million bpd, or 15 percent, since 2008, spare capacity as a percentage of oil demand would stay at extremely low levels", Staunovo wrote.

The implication is that Saudi Arabia wants to keep prices around $75 a barrel and sees that level as sustainable in the medium term.

Soon after that deal was struck, Trump announced that he had done a separate deal with Saudi Arabia to increase production by "maybe up to 2,000,000 barrels". A Bloomberg survey forecast a 5 million-barrel slide in nationwide stocks.

Zanganeh said Trump's anti-OPEC remarks are the causes of the increase in the prices in the oil market over the past days.

Oil prices fell more than 1%, but held close to three-and-a-half year peaks.

Oil prices dropped yesterday, falling 97 cents to $73.17. Low prices hurt producers concentrated in Texas and other major petroleum states.

However, the White House rowed back on this claim in a subsequent statement.

At 08:23 a.m. EDT today, WTI Crude was down 0.78 percent at $72.37, and Brent Crude traded down 1.23 percent at $76.44. "To us it is clear that harsh application of Iranian sanctions will very likely spiral oil prices higher", Sankey wrote yesterday.

The president´s repeated criticism of OPEC reflects his awareness that higher prices are already hitting a key section of his own electoral coalition.

Gasoline prices averaged $2.87 a gallon nationwide, up 28 percent from a year ago, according to AAA. Most is used by private motorists, though some is bought by businesses, governments, the postal service and the armed services.

That brings the total count to 863, up 100 from previous year.

The early gains came after Iran appeared to threaten to disrupt oil shipments from the Middle East Gulf if Washington pressed ahead with sanctions.

Even if the US government grants some waivers to allies, FGE estimated 1.7 to 2 million bpd of crude and condensate would be cut out of markets once its sanctions are implemented.

But producers and consumers are not the same, and the redistribution of income has real economic and political consequences.

He said: "Supply side disruptions that are bullish for oil, and demand side forces including the threat of trade protectionism that threaten the global economy and would thus be bearish for oil prices and most other commodities".

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