President Trump wants to lower oil prices, but isn’t entirely sure how

President Trump wants to lower oil prices, but isn’t entirely sure how

Mr Trump again accused the Organisation of the Petroleum Exporting Countries (OPEC) of driving fuel prices higher on Wednesday, and urged USA allies such as Saudi Arabia to pump more if they wanted Washington to continue protecting them against their top foe Iran. West Texas Intermediate, the USA benchmark for the price of oil, was up 1.51 percent to $75.06 per barrel, its highest level since November 2014.

The announcement comes several days after S President Donald Trump claimed that the monarchy has agreed to raising the oil output to take on Iran and Venezuela. That was no small feat, especially considering how irritated Iran was at the idea that OPEC was beholden to Trump's Twitter account.

USA light crude CLc1 settled up 20 cents at $74.14 a barrel, rebounding from a session low of $72.73 a barrel. The Saudis said on Tuesday that they would increase production to offset what's not coming into the market from Venezuela and Iran (whose oil markets have been hobbled by sanctions), but did not say by how much.

Former Shell Oil President John Hofmeister on the outlook for oil prices.

Vijay Valecha, chief market analyst at Century Financial Brokers, said the UAE's crude oil production peaked in October 2016 at 3.13 million bpd and has declined since then in line with the Opec production cuts. While OPEC is facing mounting pressure from Trump to do more, America's sanctions on group members Iran and Venezuela are adding uncertainties, just as U.S. tariffs on Chinese goods kick in on Friday.

America wants to cut Iran's oil exports to zero by November.

The early reaction to Trump's tweet was normal.

Donald Trump Threatens Action On WTO After Reports He Wants To Withdraw
USA officials in Geneva, home of the WTO, did not immediately respond to a request for comment on Monday. White House spokeswoman Lindsay Walters told Axios that the bill was still far from becoming a reality.

Saudi Arabia says it is ready to use its surplus two million barrels of oil production capacity to even out the global market.

The Strait of Hormuz is of major strategic importance.

The early gains came after Iran appeared to threaten to disrupt oil shipments from the Middle East Gulf if Washington pressed ahead with sanctions.

Iranian OPEC Governor Hossein Kazempour Ardebili said on Thursday that Trump had raised oil prices through his tweets.

In post-settlement trade, prices extended gains after the American Petroleum Institute said crude stockpiles had fallen more than expected last week.

"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.

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