Trump angry at OPEC, wants lower oil prices

Trump angry at OPEC, wants lower oil prices

The war of words over oil prices continues between US President Donald Trump and Iran, and the latest salvo from Iran is for Trump to stop tweeting.

Brent was being pressured by expectations for higher Saudi and Russian Federation production, which impacts Europe and Asia, where Brent is the benchmark, more than markets dominated by U.S. crude prices.

"This must be a two way street", he wrote, adding in block capitals, "REDUCE PRICING NOW!"

Oil prices rose on Tuesday after Libya declared force majeure on some of its crude exports, while the loss of Canadian supplies helped lifted US crude to 3-1/2-year highs. Speaking Thursday, Hossein Kazempour Ardebili, the Iranian governor to OPEC, said the USA president was ill-informed on OPEC policies. His message was conveyed by the Iranian oil ministry's news service Shana. The so-called "NOPEC Act" would make OPEC subject to antitrust law, allowing the U.S.to go after OPEC for manipulating the oil market. However, if we've learned anything from last Saturday's tweet by the President calling for the Saudi's to increase production by as much as 2 million barrels per day and the subsequent rally to a new multi-year high earlier this week, it's going to take more than talk at this time to break the market.

American crude shipments to China are around 400,000 barrels per day (bpd), worth $1 billion a month at current prices.

U.S. West Texas Intermediate (WTI) futures were down 15 cents, or 0.2 percent, at $72.79.

On Monday, Trump took another swipe at OPEC, accusing the oil organization of not helping the USA to reduce domestic gasoline prices.


In the global context, however, United States gas is already incredibly cheap. That is why Trump has asked Saudi Arabia to increase oil production by around 2 million barrels, in order to fill the gap and maintain a stable price.

In the same time, European Union pledged to buy 1m bpd from Iran defying Trump and its parliament allowed to the European Union investment bank to work in Iran a day before the market waiting of imposing new US Tariffs can trigger series of retaliates to weigh down on the global recovery.

"If they want to stop Iranian oil exports, we will not allow any oil shipment to pass through the Strait of Hormuz", Ismail Kowsari was quoted as saying.

An executive from China's Dongming Petrochemical Group said he expected Beijing to soon impose the tariff on US oil imports. "The spare capacities in OPEC countries are just sufficient to offset this amount, but will not be enough if supply is additionally reduced by outages elsewhere - such as in Libya and Canada at present - and by falling oil production in Venezuela". Further, rising trade war concerns in U.S. and China too dragged oil prices down, hitting a low of 76.60 levels as of 15:58 hours IST.

Consultants Kpler estimated the kingdom's oil exports rose by 407,000 bpd in June to 7.62 million bpd compared with May.

Meanwhile, the market continued to watch rising US crude output, with this week's oil drilling rig count data, an indicator of future production, due at 1 p.m.

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