Friday, 21 September, 2018

'Please stop' tweeting about oil, Iran tells Trump

'Please stop' tweeting about oil, Iran tells Trump 'Please stop' tweeting about oil, Iran tells Trump
Nellie Chapman | 07 July, 2018, 11:49

However, the U.S. has renegade on this agreement, with Donald Trump calling it "the worst deal ever". "Your tweets have driven the prices up by at least $10/b". Saudi Arabia's all-time record high output level stands at about 10.7 mb/d. In 2015 an agreement was reached, the Joint Comprehensive Plan of Action, which lifted sanctions against Iran in exchange for limitations being put on its nuclear program. The oil boss also accused Trump of fomenting tensions in the Middle East, specifically by pitting Iran against Saudi Arabia. USA production remained steady at 10.9 million bpd for a third week in a row.

"The more that Saudi Arabia adds to the market, the less of a supply cushion we have - that's a bullish twist to a bearish development", said Yawger at Mizuho.

However, there's no question that with US gasoline prices climbing above $3 per gallon in many states, Trump has come under increasing pressure to come up with a solution, and as such, his liaison with Saudi Arabia, in which the kingdom has agreed to pump all-out to compensate for not only Iranian export losses but those of Venezuela, is the strategy - although unsurprisingly many western analysts doubt the Saudis can pump the required amount in so short a time. It's telling that this is his third provocation on oil prices since April.

The June 22 output increase was ostensibly justified as a means to bring compliance levels back to 100 percent of the original 1.8 million b/d production adjustment-a necessary move to guarantee market stability in light of shrinking global inventories, an improving global economy, and growing demand.

Trump has repeatedly called on the oil cartel to reduce prices. For the same period, analysts expected crude inventories to decrease by about 4.5 million barrels.

In a Twitter tirade yesterday, Mr Trump urged the Organisation of the Petroleum Exporting Countries (OPEC) to stop manipulating oil prices.

Just after Thanksgiving 2014, I wrote a commentary about the OPEC attack on the American oil industry, targeted on the frackers.

Some experts have warned that prices could rise to more than $90 per barrel moving forward. The price of a barrel of oil has gone from $50 to around $75.

Trump's indirect threats for countries defended by the USA have been interpreted as addressing Saudi Arabia, the biggest member in OPEC, who was keen on advancing relations with the United States since Trump entered the White House.

Before the EIA report, benchmark West Texas Intermediate (WTI) crude for August delivery traded down about 0.8%, at around $74.01 a barrel, and fell to around $73.25 (down about 1.8%) shortly after the report's release. This will certainly affect Donald Trump and the Republican Party during the mid-term elections in November.

Canadian oil prices are poised to continue their slow, steady march upward next year as shipping bottlenecks ease and USA refiners look north to fill the gap created by decreasing output from Venezuela, according to Deloitte. OPEC is doing something to help with its recent agreement to raise production by almost the entire amount of its spare - or idle - capacity.

The average cost of gasoline has risen nearly 60 percent from a cyclical low of $1.87 a gallon in February 2016 to $2.97 last month.