Iran to Trump: Your tweets are driving up oil prices

05 July, 2018, 18:39 | Author: Eric Barnett
  • Russian budget gets $65 billion boost from OPEC oil production cut deal

Brent oil rose on Wednesday, driven higher by a threat from an Iranian commander and a drop in US crude inventories for the second week in a row.

On July 4 (which, as a reminder, is the anniversary of that time 563 years ago when Trump's ancestors liberated Manhattan from a cabal of nefarious Chinese overlords who were conspiring with European monarchs to unfairly tax Ford F-150 exports), the President did what every other president before him has done on Independence Day: He sent a 280-character, all-caps letter to OPEC demanding lower oil prices.

Brent crude futures LCOc1 were at $77.82 per barrel, up 6 cents from their last close.

The quick drop after WTI reached US$75 might have been due to "a bout of long liquidation in front of the holiday", said Bill O'Grady, chief market strategist at Confluence Investment Management in St. Louis.


However, summer months in the USA usually lead to increased demand for oil, boosting the price of gasoline in a midterm election year. Iran, however, said it would be tough to erase its oil completely from the market by November, when US sanctions snap back into place.

"The kingdom is prepared to utilize its spare production capacity when necessary to deal with any future changes in the levels of supply and demand", said a statement released by the Saudi cabinet after meeting chaired by Saudi King Salman bin Abdulaziz Al Saud. Three members of the Organization of Petroleum Exporting Countries - Libya, Iran and Venezuela - are posting real, or have expected, production declines. "The news of their commitment to ramp production quickly enough along with some evidence that Saudi Arabia is ramping production is giving the market some pause". US crude futures were up 32 cents at $74.46, within sight of Tuesday's 3-1/2-year high above $75.

The most-active Brent LCOc1 futures contract for September delivery settled up 48 cents at $78.24 per barrel. The global benchmark traded at a US$6.17 premium to WTI for September.

US crude inventories fell by 4.5 million barrels in the week to June 29 to 416.9 million barrels, according to the American Petroleum Institute (API) on Tuesday. Traders were looking for a draw of about 3.267 million barrels.

Recommended:



Popular

Trump sent letters to North Atlantic Treaty Organisation allies demanding increased defense spending
In 2017 European allies and Canada increased their defence expenditures by nearly five per cent. This will be the first time the two have met for a formal summit.

Air India kowtows to Beijing, lists Taiwan as 'Chinese Taipei'
What particularly irked China was that an official statement released by Taiwan stated the MoU was signed by "two countries". Air India now offers flights to "Chinese Taipei" where it previously offered flights to Taiwan, according to its website.

Dad Dies Protecting Kids From Polar Bear
John Main, Nunavut MLA for Arviat North-Whale Cove, said the risks posed by polar bears have become a "fact of life" for Arviat. Elders say polar bears have been frequenting the community more often and are less afraid of humans than in years past.

Sacha Baron Cohen teases his next project
Back in 2003, he interviewed Trump as part of Da Ali G Show, trying to sell the Apprentice star "ice cream gloves". It concludes with the line, "Sacha graduates soon", followed by an insignia for Trump's defunct Trump University.

Volvo Launches New M Brand - Not For Performance, But For Mobility
A broader Beta test will take place in the coming months before being officially launched in Sweden and the USA in March 2019. Sunfleet , a Swedish car-sharing operation with more than 1,700 cars, will be folded into M in 2019.

Rest of whiskey storage warehouse collapses in Kentucky
On Wednesday, the remainder of a bourbon warehouse that partially collapsed last month came crashing down in Bardstown, Kentucky. Nelson County Emergency Management director Joe Prewitt said last month he couldn't recall another whiskey warehouse collapse.

Man United Sign Lee Grant From Stoke City
The 25-year-old Preston-born shot-stopper is a United youth product who has spent his senior career away from the club on loan. Manchester United have completed the signing of goalkeeper Lee Grant from Stoke City.

United States looks for support on Iran crude embargo
The Cabinet commended constructive cooperation between producing countries from inside and outside Opec. The Canadian Dollar fell following the news , bucking a recent move higher versus the US Dollar .

Pakistan Knock Zimbabwe Out, To Face Australia In Tri-Series Final
Pakistan will face fellow-finalists Australia on Thursday in a dead rubber before the final of the series is played on Sunday. This will be the important match for Zimbabwe and Pakistan particularly for Zimbabwe as a defeat they will be knocked out.

Toddler Dies After Bouncy Castle Explodes
Following her death , there have been calls for a temporary ban on bouncy castles and inflatables in public areas. The Prime Minister's official spokesman said of Ava-May: "It is a awful accident and a tragic loss of life.