Trump requested Saudi oil support before Iran nuclear decision

Trump requested Saudi oil support before Iran nuclear decision

Brent crude futures fell 66 cents to $76.66 a barrel by 1:32 p.m. EDT.

China's May crude oil imports eased away from a record high hit the previous month, customs data showed on Friday, with state-run refineries entering planned maintenance.

He told Reuters that he does not believe OPEC will allow the increased production, and warned that oil prices would rise as a result of the Trump administration's sanctions on Iran and Venezuela.

Brent crude LCOc1 rose 27 cents to $75.65 a barrel by 0412 GMT after dropping to its lowest since May 8 on Tuesday. "The countries will not risk a landslide in prices after suffering from the oil crash of 2014", Benjamin Lu of Singapore-based brokerage Phillip Futures said on Friday in a note.

The surge in USA production has pulled down WTI into a discount versus Brent of more than $11 a barrel, its steepest since 2015.

Opec and Russian Federation meet on 22 June to discuss production policy.

Outside OPEC, however, there were ongoing signs of rising output.

OPEC and its allies led by Russian Federation have cut a combined 1.8 million barrels per day of output since January 2017 and the cuts are due to expire at the end of 2018.


Long-term investment in the oil sector has been "choked off' in favor of short-cycle investment, and supplies from USA shale producers will likely be constrained through late 2019".

"For the first time, the Saudi oil minister called us and said "we are revisiting our policy on oil output cuts", Indian Oil Minister Dharmendra Pradhan said.

On Friday, OPEC's third-largest producer Iran criticized a USA request that Saudi Arabia pump more oil to cover a drop in Iranian exports and predicted that OPEC would not heed the appeal. "The Saudis need the US on board with that campaign, so placating Washington with cheaper gasoline prices is a small price to pay".

OUT OF SYNC Despite this, oil markets are not unanimously bullish.

The U.S. government had also unofficially asked Saudi Arabia and some other OPEC producers to raise output a day before Washington slapped new sanctions on Tehran.

Oil prices could jump to $140 a barrel due to the United States sanctions against Iran and Venezuela, Iran's OPEC governor Hossein Kazempour Ardebili told Reuters on Friday. Once again, the nemesis of an oil bull run is higher out in the U.S. and some non-Opec producers like Mexico, Columbia and Azerbaijan.

"This seems to be an intervention in OPEC's supply policy ..."

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