Published: Mon, July 09, 2018
Money | By Ethel Goodwin

Oil rises even as Donald Trump demands OPEC cut prices

Oil rises even as Donald Trump demands OPEC cut prices

Even so, renewed U.S. sanctions on Iran against its oil exports look set to tighten supply further. Trump is U.S. allies to end all purchases of Iranian oil by November 4.

High oil prices make fracking more economically viable for the United States, now the third largest producer of oil worldwide.

He also mentioned that a working group to discuss the plan was being formed.

The lack of response in USA crude oil to a demand earlier this week by President Donald Trump that the Organization of the Petroleum Exporting Countries cut its prices has added to the evidence that a further move higher is possible once the current period of consolidation is over.

"Gas prices are up & they are doing little to help", he complained again on Twitter on July 4. The president said the US defends many OPEC member states, insinuating that as a returned favor, these nations should cave to Washington's demands.

"This must be a two way street", he wrote, adding in block capitals, "REDUCE PRICING NOW!" On Wednesday, he accused the Organization of the Petroleum Exporting Countries of driving up fuel prices.

This comes in the light of increased pressure from the Trump administration on allies to stop funding to Iran.

Foreign ministers from the five remaining signatories of a nuclear deal between Tehran and world powers will meet Iranian officials in the Austrian capital to discuss how to keep the accord alive after the USA withdrawal from the pact.

Brent for September settlement lost 20 cents, or 0.2 percent, to $78.04 a barrel on the London-based ICE Futures Europe exchange, after gaining 48 cents on Wednesday.

Ardebili's accusations came as oil prices have surged in recent months. For many households, the gains from cuts passed past year have been offset by the rise in oil prices since 2016.

But strong personal relationships between the leaders and agreement on the overall deal obscure disagreement on some key details, not least the desirable level for oil prices.

"Our forecasts point to Brent spending the next few months largely in the mid-to-high 70s range, although meaningful OPEC-Russia output increases could push prices lower later in the year and higher United States shale production should impose an upside limit on WTI".

Traders believe a move to two million barrels would put the global oil market under pressure, as there would be little room for movement should there be supply issues.

"You impose sanctions on major producers, founders of OPEC, and yet you are asking them to reduce the prices?"

Saudi Arabia said it would "use its spare capacity when needed to deal with any future changes in oil supply and demand rates, in coordination with other producing countries", according to a report by the Saudi Press Agency.

In Venezuela, Trump's have accelerated the sharp decline in its oil.

"You are hammering on good guys in OPEC", Kazempour said, according to Bloomberg.

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