Trump’s tweets have added $10 to oil prices, Iran’s OPEC boss says

Saudi Arabia's Minister of Energy Industry and Mineral Resources Khalid Al Falih speaks during a press conference with his Russian counterpart Alexander Novak at the Ritz Carlton Hotel in the capital Riyadh on Feb. 14 2018

US West Texas Intermediate (WTI) crude futures had risen 37 cents, or 0.4 per cent, to $74.51 a barrel by 0650 GMT, compared with their last settlement.

"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.

Oil surged in the past two weeks as the US pushes allies to end imports of Iranian crude, disruptions persist in places like Libya and American crude inventories shrink. "On balance, this leaves the oil market tighter than before, with less spare capacity".

When asked at a news conference in Bern later on Tuesday whether those comments constituted a threat to interfere with the shipping of neighbouring countries, Rouhani said: "Assuming that Iran could become the only oil producer unable to export its oil is a wrong assumption". Inventories at Cushing, Oklahoma, fell 2 million barrels last week, according to a separate forecast compiled by Bloomberg.

The U.S. government plans to shut Iran's oil exports out of the market from November, demanding that all countries stop buying its oil. State Department official, noting that some key Iranian customers may be pressured into complying with American demands.

The United States and Saudi Arabia appear to have reached an understanding: Washington will reduce or eliminate Iran's oil export revenues and in return Riyadh will guarantee oil supplies and stabilize prices.

"The OPEC Monopoly must remember that gas prices are up & they are doing little to help", Trump tweeted.

Trump claimed in a tweet that Saudi King Salman bin Abdulaziz Al Saud had agreed to his call to boost production by "maybe up to 2,000,000 barrels". Prices to (sic) high!

The early reaction to Trump's tweet was normal.

Norway-based Rystad Energy expects Iranian production to drop by 700,000 bpd by December 2018.

U.S. crude inventories fell by 4.5 million barrels to 416.9 million barrels in the week to June 29, the American Petroleum Institute (API) said on Tuesday. In North Africa, OPEC members include Algeria and Libya. On Wednesday, he accused the Organization of the Petroleum Exporting Countries of driving up fuel prices.

The UAE's Abu Dhabi National Oil Co (ADNOC) said on Tuesday it could increase production by several hundred thousand bpd if needed.

The implication is that Saudi Arabia wants to keep prices around $75 a barrel and sees that level as sustainable in the medium term. The facility produced 253,000 bpd on average a year ago.

"Your tweets have driven the prices up by at least US$10 per barrel", Iran's OPEC governor Hossein Kazempour Ardebili said in a message to Trump, carried by Iranian Oil Ministry's Shana news service.

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