Iran tells Trump to stop tweeting about oil prices

Iran tells Trump to stop tweeting about oil prices

Geoffrey Craig, the oil futures editor at Platts, said the drain on US inventory levels is in part because of higher domestic exports, which set a record for the week ending June 22 at 3 million barrels per day. USA crude futures were up 32 cents at $74.46, within sight of Tuesday's 3-1/2-year high above $75.

Brent for September settlement advanced 46 cents to end the session at US$77.76 a barrel on the London-based ICE Futures Europe exchange.

President Donald Trump says OPEC is "doing little to help" rising gas prices and claims "if anything, they are driving prices higher".

"The OPEC Monopoly must remember that gas prices are up & they are doing little to help", Trump wrote on his personal Twitter account.

Taking time out from US Independence Day celebrations, Trump sent a strongly worded message to the heads of the Organisation of the Petroleum Exporting Countries (OPEC) in a tweet. If anything, they are driving prices higher as the United States defends many of their members for very little $'s.

The president's call to "reduce pricing" was an apparent reference for oil producers to churn out more supply in order to contain spiking oil prices. This must be a two way street.


US crude oil production stagnated for the first week in many months, reaching 10.9 million bpd in the week ending June 22, holding steady for three weeks in a row, according to the EIA.

OPEC together with a group of non-OPEC producers led by Russian Federation started to withhold output in 2017 to prop up the market.

Oil surged in the past two weeks as the USA pushes allies to end imports of Iranian crude, disruptions persist in places like Libya and American crude inventories shrink.

"A key driver of the rise in prices has been the OPEC-Russia deal to cut oil output, compounded by collapsing Venezuelan production and the U.S. decision to end the Iran deal", National Australia Bank (NAB) said in its July outlook.

"If they want to stop Iranian oil exports, we will not allow any oil shipment to pass through the Strait of Hormuz", Ismail Kowsari, an Iranian Revolutionary Guards commander, told Iran's Young Journalists Club, Reuters reported. Indeed, the timing of his concerted effort to compel an OPEC production hike clearly indicates that he understands the State Department's demands that allies cut imports of Iranian crude to zero by November has the potential to push prices materially higher.

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