Published: Fri, July 06, 2018
Money | By Ethel Goodwin

Iran Warns Trump's Oil Ban Is 'Self Harm'

Iran Warns Trump's Oil Ban Is 'Self Harm'

"Please stop this method", he said, according to the oil ministry news agency.

But, so far, that hasn't lowered oil prices, largely because of the turmoil caused by Venezuelan and Iranian oil sectors, as well Libya pulling hundreds of thousands of barrels of oil out of the market as a result of upheaval there.

"REDUCE PRICING NOW!", Trump tweeted on Wednesday, accusing OPEC of "doing little to help" lower pump prices.

OPEC and Russian Federation said in June they were willing to raise output to address concerns of supply shortages due to unplanned disruptions from Venezuela to Libya, and likely also to replace a potential fall in Iranian supplies due to USA sanctions.

The world's biggest crude exporter is preparing to ramp up oil production, possibly by as much as 2 million barrels a day, amid USA sanctions on Iran.

OPEC and Russian Federation announced in June they were willing to raise output to address concerns of emerging supply shortages due to unplanned disruptions from Venezuela to Libya, and likely also to replace a potential fall in Iranian supplies due to United States sanctions.

Trump made the link between Iran sanctions and Saudi production policy explicit in a television interview with Fox News on July 1.

"We have informed our oil customers that we will only buy their commodities if they buy our crude", Gharekhani said.

USA crude futures fell $1.20 to settle at $72.94 a barrel, retreating from Tuesday's 3-1/2-year high of over $75.

This was on top of the even bigger draw of 9.228 million barrels of crude oil reported for the week-ending June 22.

The price for Brent crude oil, the global benchmark for the price of oil, was up 1.32 percent as of 9:15 a.m. EDT to $78.32 per barrel.

"You are hammering on good guys in OPEC".

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.

Iran has threatened to block oil exports through a key Gulf waterway in retaliation against any hostile U.S. action. Many coutries have not committed to the U.S. ban, and if prices rise, Iran may ultimately take in just as much money even with fewer exports.

Barely a week after OPEC's decision to ramp up oil supplies, Trump surprised the world on Saturday by announcing a new side agreement with the Saudis to compensate for supply shortages from two crisis-hit producers, Iran and Venezuela.

"They have to put out another 2 million barrels in my opinion", he said in the July 1 Fox interview.

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