Trump Declares Oil Prices 'Too High,' Blames OPEC

14 June, 2018, 09:37 | Author: Eric Barnett
  • By 2023 oil demand will hit 104.7 million barrels per day up 6.9 million bpd in 2017 according to the International Energy Agency

OPEC, a group of 14 oil-producing nations, is expected to meet again later this month. That is viewed as vital in the event of further output drops from Venezuela, and expected shortfalls from Iran when USA sanctions bite later this year.

The IEA said it expects global oil demand to grow 1.4 million bpd this year, and in 2019, and will top 100 million bpd in the fourth quarter of 2018.

President Donald Trump on Wednesday tweeted about oil prices, stating "Oil prices are too high, OPEC is at it again".

Trump's tweet comes ahead of a key OPEC meeting with Russian Federation on June 22 to discuss raising production for the first time since 2016, when they began cutting production by a 1.8 million barrels per day.

The Schork Report Publisher Stephen Schork on the outlook for oil prices.

With output in Russian Federation rising back above 11 million bpd in June and Saudi production climbing to more than 10 million bpd, supplies from all three top producers are increasing.

In May, the IEA said, higher flows from Saudi Arabia, Iraq and Algeria outweighed a fall in Nigerian supply and further losses in Venezuela, lifting OPEC crude production by 50,000 bpd to 31.69 million bpd.

The IEA meanwhile warned that whatever the outcome of the meeting, "the market will be finely balanced next year, and vulnerable to prices rising higher in the event of further disruption".


Russian Federation and Saudi Arabia are set to open the football world cup, which kicks off in Russian Federation on Thursday. Prices have risen around 60 percent over the a year ago.

OPEC and Russian Federation decided together in 2016 to cut their supply in order to push prices up following a crash in prices induced by a global crude production glut.

But Matt Smith, director of research at ClipperData, said Trump himself is responsible for some of the pressure due to the decision to exit the Iran deal.

Jason Bordoff, a Columbia University professor and former energy adviser to President Barack Obama, said politicians always fret when gasoline prices rise before a big election. "The real catalyst for the recent rise in prices is the sanctions on Iran".

The president's tweet comes ahead of a two-day meeting that OPEC and other producers will attend beginning June 22 in Vienna to discuss future policy on output.

Crude stockpiles fell by 4.1 million, and gasoline supplies fell by 2.3 million barrels, the Energy Information Administration said.

Various sources show that "considerable uncertainty as to world oil demand and non-OPEC supply prevails", OPEC said, leading to a wide range of estimates for the remainder of 2018. OPEC reported in its monthly oil market report Tuesday, that Saudi Arabia has already increased production.

Recommended:



Popular

How social media reacted to England's defeat to Scotland
Morgan confirmed England will agree to Australia's request, with the hosts ready to help advance a positive view of the sport . The end result is that neither the captain nor the vice-captain that led the country last time round will be playing.

African countries that did not vote for Morocco revealed
The 2015 Women's World Cup was played on artificial turf, prompting a human rights complaint from a group of elite female players. The national team's failure to qualify for the World Cup was embarrassing for the team and its fans. "It's exciting times ahead".

Leaker says that Samsung Gear S4 will have bigger battery, gold variant
That is, unless Samsung goes out of its way to assuage those potential fears when it announces the Galaxy Note 9 later this year . The Note 9 is rumored to have a 4,000mAh battery, according to mobile tipster Ice Universe (via SamMobile ).

Nike won't supply Iranian national soccer team with shoes, citing United States sanctions
Nike confirmed in a statement they are unable to provide kit to Iran due to the USA sanctions now in place against the country. Queiroz's side also face Spain and Portugal in the first phase.

'Anthony Martial wants to leave Manchester United'
His relationship with Mourinho grew frostier by the day and game time was hard to come by for the youngster. Everyone will have their opinion, I think he must resume the course of his career.

Roseanne Barr Sorry for Calling George Soros a Nazi
She's considering giving up financial and creative participation in a spinoff so the people she loves can have jobs. As a result of her sudden mainstream popularity, her relationship with Morgan changed.

Idaho child diagnosed with plague; only fifth human case in state history
When a case does crop up in the U.S. , disease detectives try to find every person an infected individual came into contact with. That would only happen through close proximity to someone suffering from the variation of the disease known as pneumonic plague.

Tyson Fury eyeing title fight before end of 2018
I got four rounds in and TV exposure. "I am determined to enjoy my career this time around and not take anything for granted". The Briton went into the ring for the first time from November 2015, when he beat Wladimir Klitschko.

England fans fume at Eddie Jones after witnessing South Africa collapse
South Africa were shaken and England did not relent from the re-start as Daly combined superbly with wing May to find space and slide in for a second.

Rumours claim that USB-C support is coming to 2019 iPhones
Apple said that after it learned of the techniques, it reviewed the iPhone operating system code and improved security. Apple said it was working a fix to mitigate the possibility of accessing data from GrayKey or similar tools.