Trump's tweets have added $10 to oil prices - OPEC

Iran to allow private sector to export oil, beat US sanctions

"The reduction comes a day after Trump took aim at OPEC for rising oil prices, urging the cartel to "REDUCE PRICING NOW!"

REUTERS/Jonathan ErnstSaudi Arabia's King Salman bin Abdulaziz Al Saud (L) receives US President Donald Trump for the Arab Islamic American Summit in Riyadh, Saudi Arabia May 21, 2017.

'King Salman affirmed that the Kingdom maintains a two million barrel per day spare capacity, which it will prudently use if and when necessary to ensure market balance, ' read the statement.

"Our goal is to increase pressure on the Iranian regime by reducing to zero its revenue from crude oil sales", Hook, the State Department's director of policy and planning, told reporters.

"The Trump support base is probably the part of the US electorate that will be the most sensitive to an increase in USA gasoline prices", Halff said.

"The 'OPEC+' agreement fell short of what was expected to render a bearish signal to the market", Abhishek Kumar, senior energy analyst at Interfax Energy's Global Gas Analytics in London, said in an email.

Saudi Arabia doesn't seem to be in a rush to fulfill Trump's request for an extra 2 million barrels per day.

"Falling production from Venezuela and an expected decline in supply from Iran after U.S. sanctions have fueled speculation of tighter global supply".

Oil prices reversed gains after hitting $75 a barrel on Tuesday, as Saudi Arabia said it is prepared to pump more oil to ease supply constraints in the market.

Trump's interventions with tweets "unsettle" the market and appear to have pushed prices up, Standard Chartered Plc energy analyst Emily Ashford and head of commodities research Paul Horsnell wrote in a note on Tuesday (July 3).

"A fall in the price per barrel won't serve the interests of the big oil producers", Kaddour stressed.

Immediately after the moot, the US Energy Secretary Rick Perry emphasised that the deal between global oil producers to boost crude output was not enough to relieve global oil markets that are stressed by supply constraints.

WTI (oil futures on NYMEX) witnessed good two-way price movements so far this Wednesday, now down more than a dollar from daily tops at $ 74.88, as the recovery attempts remain capped by the $ 74 handle.

To this end, the New York Times says that "Saudi help in making up for lost Iranian crude oil will be crucial to Mr. Trump's efforts to contain Iran while not forcing prices up too high to cause political damage in the United States". The two main importers of Iranian crude are China and India; both of whom import around 400,000 BPD now.

Thus, collectively all countries should raise production by 1 mln barrels per day.

US President Donald Trump sent a message on Twitter that he asked Saudi Arabia to increase oil output by 2 million barrels because "prices to (sic) high".

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