Iran Accuses Trump Of Tweeting Up Oil Prices

Iran Accuses Trump Of Tweeting Up Oil Prices

Mr Trump again accused the Organisation of the Petroleum Exporting Countries (OPEC) of driving fuel prices higher on Wednesday, and urged United States allies such as Saudi Arabia to pump more if they wanted Washington to continue protecting them against their top foe Iran.

West Texas Intermediate crude for August delivery rose 20 cents to settle at US$74.14 a barrel on the New York Mercantile Exchange, after earlier rising to as high as US$75.27.

The leader of Saudi Arabia, OPEC's biggest member, has assured Trump that the kingdom can raise oil production if needed, and that the country has 2 million barrels per day of spare capacity that could be deployed to help cool oil prices to compensate for falling output in Venezuela and Iran.

"This must be a two way street", he wrote, adding in block capitals, "REDUCE PRICING NOW!"

Since April, President Trump had criticized OPEC twice for manipulating oil prices, calling the cartel out for oil prices that are "too high".

Brent crude declined from its $115 per barrel peak in June 2014 to below $30 in January 2016 before recovering to its current price of around $78.

The UAE on Tuesday said it will increase production by 0.2 million barrels per day to 3.5mbpd by the end of 2018 to help meet any oil shortage and will also adhere to the conformity level. Inventories at Cushing, Oklahoma, fell 2 million barrels last week, according to a separate forecast compiled by Bloomberg.

More news: French President parties at Lagos nightclub
More news: Arsenal boss Emery willing to sell players to get Gomes through door
More news: Suarez: Uruguay can cope without Cavani

OPEC reached an agreement in June to increase output, but this did little to stop the rise in oil prices.

Investors had questions as "to whether Saudi Arabia and Russian Federation could or would really be able to ramp production quickly enough", said Rob Haworth, who helps oversee US$151 billion at U.S. Bank Wealth Management in Seattle.

The clash over OPEC policy and the resumption of USA sanctions on Iran has been amplified this week as Trump continues to target the group which he blames for rising prices.

In May, US President Donald Trump pulled out of a multinational deal under which sanctions on Iran were lifted in return for curbs to its nuclear programme.

Oil prices rose on Tuesday after Libya declared force majeure on some of its crude exports, while the loss of Canadian supplies helped lifted USA crude to 3-1/2-year highs.

In post-settlement trade, prices extended gains after the American Petroleum Institute said crude stockpiles had fallen more than expected last week.

"If they want to stop Iranian oil exports, we will not allow any oil shipment to pass through the Strait of Hormuz", Ismail Kowsari was quoted as saying.

Related Articles