Trump, Iran trade sharp words over oil prices ahead of OPEC meeting

Opec and its allies have been curbing supply since January 2017 to boost oil prices and cut bloated global inventories

Opec and its allies have been curbing supply since January 2017 to boost oil prices and cut bloated global inventories

The Organization of the Petroleum Exporting Countries and some non-OPEC producers, led by Russian Federation, agreed to cut output in 2017 to reduce a supply overhang, which has led to a 60 percent spike in oil prices over the past year.

OPEC is the Organization of Petroleum Exporting Countries, a group of 14 oil-producing nations that had agreed to tighten supply to shore up crude prices. The cartel is meeting next week, where it will consider pulling back from the deal.

"The demand metrics here are awesome for crude oil and gasoline", said John Kilduff, a partner at Again Capital in NY.

Prices peaked in late May, scraping the $80 per barrel ceiling on the Brent futures contract and $72.24 on the West Texas Intermediate.

LONDON-Oil prices edged lower Wednesday, as traders appeared to discard fresh signs of robust demand and kept their eyes fixed on OPEC's gathering next week. The U.S. has lobbied Saudi Arabia and other members, arguing they need to raise output by 1 million barrels a day to keep prices in check, people told Bloomberg News earlier this month.

He last raised the issue in April.

US crude stocks fell more than expected last week, while gasoline and distillate inventories dropped, the Energy Information Administration said on Wednesday.

With output in Russian Federation rising back above 11 million bpd.in June and Saudi production climbing to more than 10 million bpd., supplies from all three top producers are increasing.

In the United States, rising gasoline prices have threatened to blunt other economic headwinds.

Trump sent out his tweet hours after returning to Washington from a summit with North Korean leader Kim Jong Un in Singapore and it was not immediately clear what prompted his comment.

Even if the supply gap, triggered by the return of U.S. sanctions on Iran and a major political crisis in Venezuela, is plugged, the oil market will likely remain vulnerable to disruption next year, the IEA warned.

Oil prices across the country have crept up toward $3 a gallon as the U.S. hits its peak summer travel season - still less than the $4 a gallon in 2008 during the 2007-2009 Great Recession, according to Reuters.

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