Trump renews attack on OPEC ahead of group's production meeting

13 June, 2018, 18:27 | Author: Eric Barnett
  • Crude Oil

Barely recovered from the roller coaster ride of recent weeks, traders are holding their breath for the June 22 meeting of oil ministers from OPEC member states in Vienna.

The Organization of the Petroleum Exporting Countries and some non-OPEC producers, led by Russian Federation, agreed to cut output in 2017 to reduce a supply overhang, which has led to a 60 percent spike in oil prices over the past year.

Oil prices have risen by around 60 percent over the a year ago after the Organization of the Petroleum Exporting Countries and some non-OPEC producers, including Russian Federation, started withholding output in 2017 to reduce excess supply. The cartel is meeting next week, where it will consider pulling back from the deal.

Oil prices are set, for the most part, by Saudi Arabia and, to a lesser extent, it's OPEC partners.

In the letter, the senators said a run-up in oil prices is "effectively a tax on every American family's discretionary budget" since the price of oil directly affects the price of gasoline.

However, oil dipped on Wednesday amid speculation that the deal may be revised following reports that both Russian Federation and Saudi Arabia are ramping up production.


In April, Trump also blasted OPEC on Twitter, accusing the group of "artificially" raising oil prices.

Oil prices dropped on Wednesday as a result of increased supplies in the U.S.

An oil production shortfall in Iran and Venezuela may force OPEC and Russian Federation to decide later this month to open their taps, the International Energy Agency said Wednesday.

However, OPEC's president, Suhail Al Mazrouei, said on Tuesday that the USA has not asked the group to increase oil production in the wake of political unrest in oil-rich Venezuela and US sanctions on Iran. Prices nationwide have edged up toward $3 USA a gallon as the U.S. hits its peak summer travel season, still less than the $4 United States a gallon in 2008 during the 2007-2009 Great Recession.

Trump sent out his tweet hours after returning to Washington from a summit with North Korean leader Kim Jong Un in Singapore and it was not immediately clear what prompted his comment.

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