Trump to OPEC: 'Reduce pricing now!'

Trump to OPEC: 'Reduce pricing now!'

Crude oil peaked at $75.24 around 9:50 Eastern Time before dropping below $75 again.

While the White House later backed away from an agreement, the tweet came after oil and gasoline prices surged last week even after Saudi Arabia convinced OPEC to potentially add almost 1 million barrels a day to the market.

While the price of the global benchmark Brent crude has risen by 7.5 percent to $77.9 bpd since the mid-June bottom, the price of the North American benchmark WTI has risen by 16 percent and now at $73.8 per barrel.

Reid said that he expected oil to stay around its current price, with a possible increase to $80 a barrel.

Saudi Arabia and Russian Federation, which led OPEC and partner countries in reaching last month's production deal, reaffirmed the agreement in statements on Tuesday, saying this will mean increasing oil output by 1 million barrels a day.

The United States has told countries to cut all imports of Iranian oil from November and is unlikely to offer any exemptions, a senior State Department official said last Tuesday as the Trump administration ramped up pressure on allies to cut off funding to Iran. Trump's administration in early May said that it would renew USA sanctions on Iran and has sought to reduce other foreign buyers' purchases of Iranian oil.

President Donald Trump said the Organization of the Petroleum Exporting Countries (OPEC) is "doing little to help" rising gas prices and claims "if anything, they are driving prices higher".

The UAE was the fourth largest Opec producer with 2.89 million barrels per day in June after Saudi Arabia (10.3mbpd), Iraq (4.5mbpd) and Iran (3.7mpbd).

"Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference..."

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

Iran possesses the second-largest gas reserves on the planet after Russian Federation and the fourth-largest oil supply, while Saudi Arabia is the world's biggest oil exporter.

"Bulls are regaining control", said Tamas Varga, an analyst at PVM Oil Associates in London.

"A good chunk of the rally that we've had in the last month or so we've had is because of the Iranian sanctions", Smith says.

A Reuters survey estimated US crude oil stockpiles fell for a fourth consecutive week, by about 3.3 million barrels, in the week ended June 29.

Iran will allow private companies to export crude oil, part of a strategy to counter U.S. sanctions, and is urging fellow OPEC members, including regional rival Saudi Arabia, not to break output agreements, state media and officials said on Sunday.

President Trump also touted the promise in a tweet Saturday. "Prices to high! He has agreed", Trump tweeted.

FXTM's Otunuga took a more bearish stance on the direction of oil prices.

The size of the OPEC production increase and the verbal commitments from Saudi Arabia and the UAE is further evidence that hitting a 2M bpd increase will be a challenge. There have been supply outages in Venezuela, Libya, Canada, Angola, Iran, and Kazakhstan, according to the trade publication Oil Price.

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