Trump accuses OPEC of driving up oil prices

Trump accuses OPEC of driving up oil prices

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.

Brent crude was up 53 cents at $76.41 a barrel by 10:52 a.m. EDT (1552 GMT).

"The demand metrics here are awesome for crude oil and gasoline", said John Kilduff, a partner at Again Capital in NY.

"With rising production from United States shale adding to oil's woes and reviving oversupply concerns, further downside could be a possibility in the short to medium term", Otunuga said. "It seems like we need nearly every barrel of that to keep up with this refining demand".

Since early 2017, OPEC and other oil-producing countries have agreed to reduce supply in a bid to bolster oil prices.

To make up for the losses, the IEA estimated that Middle East Opec countries could increase production in fairly short order by about 1.1 million bpd.

Although Saudi Arabia has benefited from oil's rally over the last two years, the government relies on a strong security relationship with the US, giving Washington some influence in the debate over OPEC policy.


Oil prices edged higher on Wednesday, turning positive after USA government data showed a bigger weekly draw than expected in domestic crude inventories along with unexpected declines in gasoline and distillate stocks.

"More oil from OPEC plus is the base case", said Bjarne Schieldrop, analyst at Swedish bank SEB. OPEC members include Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Moscow's pledge in the deal is to shave off 300,000 bpd from the October 2016 level, which was the country's highest monthly production in nearly 30 years-11.247 million bpd. "Not good!", the president tweeted on Wednesday morning.

The agency is forecasting global oil demand will grow by 1.4 million barrels per day (bpd) in 2019 - topping 100 million bpd in the second quarter of the year.

"Prices are unlikely to increase as sharply as they did from mid-2017 onwards and thus the dampening effect on demand will be reduced", the IEA said in its latest monthly report.

Fund manager Pierre Andurand at Andurand Capital is bullish.

After Trump tweeted his unhappiness with the price of oil in April, the price of oil fell.

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