Published: Thu, July 05, 2018
Business | By Eloise Houston

Oil prices fall as Donald Trump demands OPEC ‘reduce pricing now’

Oil prices fall as Donald Trump demands OPEC ‘reduce pricing now’

On Wednesday he tweeted that OPEC is "doing little to help, " adding that, "if anything, they are driving prices higher".

"Donald Trump's call on other countries to stop buying crude oil from Iran and putting European companies under pressure with Nigeria and Libya being crisis-stricken, Venezuela's crude oil output having plunged and Saudi Arabia's consumption increasing due to summer, would be a kind of self-harm for the USA as it would lead to dramatic price hikes in the oil market", Ardebili said.

This is while world oil prices have climbed higher as the Trump administration has pressured USA allies to end all purchases of oil from Iran.

Saudi Arabia now produces about 10 million barrels of oil per day. Irritated by what he feels is a lack of cooperation from the Saudis who head OPEC, added: "If anything, they are driving prices higher as the United States defends many of their members for very little $'s". Your tweets have driven the prices up by at least $10 per barrel.

USA 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.

Distillate inventories saw a draw this week of 438,000 barrels, compared to an expected build of 633,000 barrels. However, if we've learned anything from last Saturday's tweet by the President calling for the Saudi's to increase production by as much as 2 million barrels per day and the subsequent rally to a new multi-year high earlier this week, it's going to take more than talk at this time to break the market.

USA crude oil production stagnated for the first week in many months, reaching 10.9 million bpd in the week ending June 22, holding steady for three weeks in a row, according to the EIA.

Recent price rises have also been spurred by a United States announcement that it plans to re-introduce sanctions against Iran from November, which will also target its oil industry.

Over the short-run, Canada's production problems will go away and Libya's issue will probably be contained.

Trading had been expected to be limited on Wednesday by the US national holiday, although the market has been more volatile.

The wildcard appears to be Russian Federation.

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