Trump declares oil prices 'too high', blames Opec

Trump declares oil prices 'too high', blames Opec

Oil prices have risen by around 60 per cent 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 world's top crude producers are key partners in the OPEC+ deal, which is created to prop up oil prices by cutting global output.

Since early 2017, OPEC and other oil-producing countries have agreed to reduce supply in a bid to bolster oil prices. USA light crude was 40 cents lower at $65.96. "The world economy is feeling some pain from higher oil prices", the IEA commented in its latest market report, adding "Increasing trade tensions are the main risk to our oil demand forecast".

"The prospect of easing supply curbs from OPEC-led producers continues to be reflected in oil's overall depressed price", Lukman Otunuga, analyst at brokerage FXTM said as quoted by Reuters.

With output in Russian Federation rising back above 11 million bpd in June and Saudi production climbing back above 10 million bpd, supplies from the top three producers are increasing. Prices have risen around 60 per cent over the previous year.

US ally Saudi Arabia remains OPEC's most powerful member - with enough production capacity to manipulate global supplies. The Kingdom self-reported a production increase of 161,400 bpd to 10.030 million bpd, just below its ceiling of 10.058 million bpd.

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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.

Longer term, the market could tighten as demand increases if OPEC fails to cover supply shortfalls, the International Energy Agency said on Wednesday.

President TrumpDonald John TrumpWhat you need to know about Tuesday's elections Danny Tarkanian wins Nevada GOP congressional primary Laxalt, Sisolak to face off in Nevada governor's race MORE focused on high oil prices in a tweet on Wednesday, again laying blame on OPEC.

The IEA said it expects global oil demand to grow 1.4 million bpd. this year, and in 2019, and will top 100 million bpd.in the fourth quarter of 2018.

Fund manager Pierre Andurand at Andurand Capital is bullish.

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