Published: Mon, July 09, 2018
Money | By Wilma Wheeler

Trump demands OPEC reduce pricing now, Oil prices fall

Trump demands OPEC reduce pricing now, Oil prices fall

"Pls stop it, otherwise it will go even higher!"

Hossein Kazempour Ardebili, Iran's ambassador to the Organization of the Petroleum Exporting Countries (OPEC), was quoted by media as saying that the world - and specifically American consumers - would eventually consider Trump blameworthy for runaway oil prices in worldwide markets.

"Increased Saudi crude availability that is being enhanced by reduced OSPs (official selling prices) into Europe and other regions is providing a strong counter against curtailed Libyan export activities", Ritterbusch wrote.

The sanctions would include a universal ban on Iran over buying or acquiring U.S. dollars as well as restrictions over purchases of crude oil from the country and investing in its oil sector projects. And during the 2008 presidential race, Barack Obama said in a campaign speech that "here in OH, you're paying almost $3.70 a gallon for gas - two-and-a-half times what it cost when President Bush took office".

Oil is trading near levels last seen in 2014 as supply disruptions from Libya to Canada and Venezuela are seen outweighing output gains by the Organization of Petroleum Exporting Countries.

"A key driver of the rise in prices has been the OPEC-Russia deal to cut oil output, compounded by collapsing Venezuelan production and the United States decision to end the Iran deal".

Saudi Arabia cut pricing for August sales of its light oil grade to Asia as the world's biggest crude exporter is increasing production to assure buyers there is sufficient supply following US President Donald Trump's demands that OPEC do more to stabilize oil markets. Riyadh has the spare capacity to help meet any additional demand in the market, but has stopped short of saying it will immediately start adding the full two million barrels per day.

Ardebili said Iran is also on the "two-way street" as a member of OPEC. He predicted that higher oil prices would end up hurting the USA economy.

In a tweet on Saturday, Trump said Saudi Arabia had agreed to increase oil output by up to 2 million barrels, an assertion that the White House rowed back on in a subsequent statement.

Soon after that deal was struck, Trump announced that he had done a separate deal with Saudi Arabia to increase production by "maybe up to 2,000,000 barrels".

Despite the key member Saudi Arabia reaffirming that the cartel and its allies will boost output, Goldman Sachs warned that oil is likely to lead a new rally as the market faces significant supply risks from Venezuela to Iran. High fuel prices drain money from consumers' pockets, hurting economic growth while adding to inflation. "You are claiming you are defending them. You are actually discrediting them and undermining their sovereignty, we expect you to be more polite", Kazempour said, according to Bloomberg.

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