Trump eyes oil prices: ‘OPEC is at it again’

Lloyd Doyle
June 13, 2018

The Organization of the Petroleum Exporting Countries and some non-OPEC producers, led by Russian Federation, agreed to cut output in 2017 to reduce a supply overhang, which has led to a 60 percent spike in oil prices over the past year.

His tweet comes in advance of a meeting of the Organization of the Petroleum Exporting Countries and Russian Federation planned for June 22 in Vienna to discuss easing supply caps that have been in place since the beginning of 2017. The cartel is meeting next week, where it will consider pulling back from the deal.

But OPEC said on Tuesday the outlook for the oil market in the second-half of this year was highly uncertain and warned of downside risks to demand.

However, oil dipped on Wednesday amid speculation that the deal may be revised following reports that both Russian Federation and Saudi Arabia are ramping up production. "Not good!" Trump wrote in a post on Twitter on Wednesday after last raising the issue in April. "You can not place sanctions on two OPEC founder members and still blame OPEC for oil price volatility", he said in a statement to Reuters, referring to itself and Venezuela.

OPEC and other producers will meet on June 22-23 in Vienna to discuss future production policy.


The U.S. move has put pressure on European and Asian clients to stop importing Iranian oil or doing business with the country.

US ally Saudi Arabia remains OPEC's most powerful member - with enough production capacity to manipulate global supplies.

With output in Russian Federation rising back above 11 million bpd in June and Saudi production climbing back above 10 million bpd, supplies from the top three producers are increasing.

As oil prices continue to fall, the American Petroleum Institute (API) reported a mild build of 800,000 barrels of United States crude oil inventories for the week ending June 8, compared to analyst expectations that this week would see a much larger draw in crude oil inventories of 2.744 million barrels. Prices nationwide have edged up toward $3 USA a gallon as the U.S. hits its peak summer travel season, still less than the $4 United States a gallon in 2008 during the 2007-2009 Great Recession. Trump tweeted on April 20.

Other reports by Iphone Fresh

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