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Trump angry at OPEC, wants lower oil prices

09 July, 2018, 00:37 | Author: Melinda Barton
  • Trump shakes hands with Saudi Arabia's Crown Prince Mohammed bin Salman in the Oval Office at the White House in Washington

LONDON, July 5 (Reuters) - Oil fell on Thursday after U.S. President Donald Trump demanded OPEC cut crude prices, but the market found some support from an Iranian threat to block shipments through the Strait of Hormuz. S. defends many of their members for very little dollars. "This must be a two way street, REDUCE PRICING NOW!"

However, there's no question that with USA gasoline prices climbing above $3 per gallon in many states, Trump has come under increasing pressure to come up with a solution, and as such, his liaison with Saudi Arabia, in which the kingdom has agreed to pump all-out to compensate for not only Iranian export losses but those of Venezuela, is the strategy - although unsurprisingly many western analysts doubt the Saudis can pump the required amount in so short a time.

Oil prices edged up on Wednesday following a report of tightening US fuel inventories amid an outage at Syncrude Canada oil sands facility in Alberta, which usually supplies the United States. Iran's OPEC governor, Hossein Kazempour Ardebili, accused the United States and Saudi Arabia of trying to push up oil prices and said both countries are acting against the foundation of OPEC.

Earlier, Kazempour Ardebili had said that Trump's pressure on worldwide firms not to buy Iranian oil would drive prices higher and end up hurting the American economy. It went down when US shale producers started pumping more, taking advantage of the higher price.

"We're headed for an unparalleled trade conflict between the world's largest economies", said Stephen Innes, head of trading for Asia/Pacific at brokerage OANDA.

Renewed U.S. sanctions on Iranian oil appear set to tighten supplies further.

USA crude inventories fell by 4.5 million barrels in the week to June 29 to 416.9 million barrels, according to the American Petroleum Institute (API) on Tuesday.

Kazempour's defense of OPEC came one day after Trump took to Twitter to attack the organization for its inaction on rising oil prices.


Aramco, Saudi Arabia's state-run crude oil company, has reportedly announced sizable cuts for its August prices, reflecting the Gulf kingdom's promise to its American ally to help stabilize the global oil market.

Responding to Trump's demands, Ardebili argued that the U.S.is to blame for imposing sanctions on OPEC members.

Traders said supply disruptions could be short-lived as Opec and allied producers ramp up output.

Beginning midnight Washington time on Friday, the USA imposed new tariffs on US$34 billion worth of annual imports from China, to which Beijing responded by saying that it was imposing tariffs on USA goods.

The decline in fuel inventories was largely down due to the outage at Syncrude Canada's 360,000 barrels per day oil sands facility near Fort McMurray, Alberta.

Trump claims Saudi Arabia agreed to oil production hike, Riyadh doesn't confirm Donald Trump has asked Saudi Arabia to drastically increase its oil production, citing "turmoil and dysfunction" in Iran and Venezuela.

Trump has repeatedly called on the oil cartel to reduce prices.

An oil pump jack is seen at sunset near Midland, Texas, U.S., May 3, 2017.

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