Oil near 3.5-year high despite Trump's beef with Opec

Oil prices climb on tightening US market

Oil prices climb on tightening US market

"Your tweets have driven the prices up by at least $10 per barrel", Iran's OPEC governor Hossein Kazempour Ardebili said the message, Bloomberg reported, citing the Iranian Oil Ministry's Shana news service.

In the same time, European Union pledged to buy 1m bpd from Iran defying Trump and its parliament allowed to the European Union investment bank to work in Iran a day before the market waiting of imposing new US Tariffs can trigger series of retaliates to weigh down on the global recovery.

Oil output cuts by the Organization of Petroleum Exporting Countries and allies including Russian Federation since January 2017 have reduced a glut of crude.

Trump also tweeted on the topic two weeks ago saying he hoped OPEC would increase production in an effort to keep prices down.

However, there's no question that with USA 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.

Kazempour spoke Thursday after Trump tweeted a day earlier demanding the "monopoly" of OPEC to "reduce pricing now!"

"You impose sanctions on major producers, founders of OPEC, and yet you are asking them to reduce the prices?"

Ardebili said Iran is also on the "two-way street" as a member of OPEC. "To us it is clear that harsh application of Iranian sanctions will very likely spiral oil prices higher", Sankey wrote yesterday.

Brent crude LCOc1, the global benchmark, was down 83 cents at $76.56 a barrel by 1403 GMT. In December, the average price was just under $65. Lately, drop in U.S. inventories for the straight second week and a threat from Iranian commander also helped prices to surge.

Oil slid after a surprise increase in American stockpiles, while Saudi Arabia cut prices for its crude as US President Donald Trump urges OPEC to do more to help make gasoline cheaper. "Perhaps one of the USA president's advisors should explain this to him", the German financial institution added.

The oil price has risen 70% in the last 12 months, from 45$/ barrel for Brent in June 2017 to around 80$ in May 2018. But U.S. allies aren't on board with Trump's planned sanctions on Iran.

"The responsibility of paying unnecessary prices for oil by all consumers of the whole world, especially in USA gas stations, is exclusively upon [Trump's] shoulders and the price of over $100 per barrel is yet to come".

The White House said Saturday that Saudi Arabia's King Salman bin Abdulaziz Al Saud agreed to raise output after the Trump administration ordered all countries to stop buying oil from the Islamic Republic by November or face United States sanctions, as part of Trump's withdrawal from the Iran nuclear deal. At the same time- racked by internal crises-Libya and Venezuela are also struggling to meet their outputs. Despite a positive nod from Saudi Arabia and Russian Federation for higher production, the backdrop of poor output from Libya and Canada prompted supply scarcity.

Recommended News

  • Thai diver drowns as window for cave rescue narrows

    Thai diver drowns as window for cave rescue narrows

    Around 1,000 people are involved in the rescue operations, including navy divers, military personnel and civilian volunteers. It's taken even experienced rescue divers up to five hours to safely navigate the unsafe cave channels to reach the team.
    Meghan Markle goes for power yellow at latest royal engagement

    Meghan Markle goes for power yellow at latest royal engagement

    It has been reported that Meghan refrains from wearing bright colours when accompanying Queen Elizabeth II to give Her Majesty the spotlight.
    Intel denies halting production of 5G modems following Apple snub

    Intel denies halting production of 5G modems following Apple snub

    Development of "Sunny Peak" has now been halted, it's said , and the team working on the chipset redeployed to other projects. However, at some point Apple changed its mind, telling Intel it will not rely upon its modems in those devices.
  • Heat Advisory And Isolated Storms Today

    Heat Advisory And Isolated Storms Today

    Some of the storms will be slow-movers bringing lots of rain to some towns while others nearby get nothing at all. Forecasters were concerned about a thunderstorm that was producing golf ball-size hail and damaging winds.
    Justin Trudeau: PM Says He \

    Justin Trudeau: PM Says He \"Didn't Do Anything Wrong\" After Allegations Surface

    It alleged he told the woman he would not have "been so forward" if he had known she was reporting for a national newspaper. He did not respond to that question directly, but repeated several times that he does not believe he acted inappropriately.
    HNA chairman Wang Jian died falling off wall in France

    HNA chairman Wang Jian died falling off wall in France

    It has major stakes in Deutsche Bank, hotel chain Hilton and skyscrapers in London and employs more than 400,000 people worldwide. HNA has been selling some assets as Chinese regulators tighten lending controls and press companies to rein in debt.
  • Israel targets 'Syrian position' in Qunaitra in northern Golan Heights

    Israel targets 'Syrian position' in Qunaitra in northern Golan Heights

    It added that the government now controlled nearly 70 percent of the province that was the first to rise against Assad in 2011. The Observatory said Syrian troops were now about three kilometers (2 miles) from the Naseeb border crossing.
    Nearly Half of Americans Think President Trump Is Racist

    Nearly Half of Americans Think President Trump Is Racist

    Other members of Vermont's delegation have instead focused on condemning the Trump administration's approach to immigration. They are tougher and smarter than these rough criminal (elements) that bad immigration laws allow into our country.
    Defending hot dog eating champion sets new record

    Defending hot dog eating champion sets new record

    The defending champion consumed 74 franks and buns in just 10 minutes at the Independence Day event on New York's Coney Island. Master of Ceremony George Shea , top centre, announces that reigning champion Joey Chestnut , bottom centre, as the victor .
  • Brazil says injured Danilo out of World Cup

    Brazil says injured Danilo out of World Cup

    But as fans wait to find out England's fate, they're already questioning details of the World Cup final. Samara is due to host England's quarterfinal game against Sweden on Saturday .
    Economy Adds 213,000 Jobs in June, Unemployment Edges Up to 4 Percent

    Economy Adds 213,000 Jobs in June, Unemployment Edges Up to 4 Percent

    With a record 6.7 million unfilled jobs in April, economists are optimistic that wage growth will accelerate later this year. There were increases in professional and business services employment as well as leisure and hospitality.
    United Kingdom  police hunt for source of Novichok

    United Kingdom police hunt for source of Novichok

    Prime Minister Theresa May subsequently pointed the finger of blame at agents working for Vladimir Putin's Russian Federation . Britain has notified the global chemical weapons watchdog, the Organisation for the Prohibition of Chemical Weapons (OPCW).

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.