Trump urges Opec to lower the price of oil

22 September, 2018, 02:54 | Author: Eric Barnett
  • Oil prices fall amid surprise growth in U.S. crude stocks

Bloomberg reported that while Saudi Arabia had no desire to push prices higher than $80, it may no longer be possible to avoid it. US sanctions affecting Iran's petroleum sector are due to come into force from November 4.

"We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices!"

WTI prices were up Thursday morning on the news that US crude oil inventories were down 2.1 million barrels last week, the fifth straight week of declines.

President Trump warned members of OPEC again on Thursday that now is not the time to be greedy or the protection provided by the U.S.to the Middle East could be in jeopardy. We will remember. The OPEC monopoly must get prices down now!' Trump wrote in his latest volley on Twitter.

He has consistently complained that oil prices are too high.

Trump's tweet makes sense "with oil prices close to the highs of the year", said Giovanni Staunovo, commodity analyst at UBS Group AG.

Rising U.S. gasoline prices could create a political headache for Trump before November congressional elections by offsetting Republican tax cuts.


Brent has been trading just below $80 a barrel, backed by concerns of supply shortages from looming US sanctions against Iran, which are set to take effect in November.

The oil price dropped after the tweet.

Under pressure from the USA president, the Organization of the Petroleum Exporting Countries, Russia and other allies agreed in June to boost production by 1 million barrels per day, having participated in a supply-cutting deal since 2017.

On the opposite side of the same blade, USA sanctions against Iran, due to come into effect in November, sees the United States attempting to force Iran out of global oil markets, seeing a firm bolstering effect on crude barrel costs globally as traders brace for a disruption of supply lines from the Middle East.

After languishing at less than 6million barrels of oil per month between 2000 and 2011, American oil production began rapidly increasing from 2012 onwards.

Meanwhile, ministers from OPEC nations and non-OPEC producers are set to meet on Sunday to discuss compliance with output policies.

Industry sources familiar with Saudi oil plans say state energy giant Aramco can raise output quickly to 11 million bpd, but reaching 12 million bpd could take up to six months.

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