Trump Declares Oil Prices 'Too High,' Blames OPEC

Share

Oil prices are set, for the most part, by Saudi Arabia and, to a lesser extent, it's OPEC partners.

Earlier in the session, Brent and US crude had retreated on concerns about rising production in the United States and expectations that OPEC and other producers could relax voluntary output cuts. USA light crude was up 10 cents at $66.46 a barrel.

Oil prices dropped on Wednesday as a result of increased supplies in the U.S.

In the United States, the American Petroleum Institute said on Tuesday crude oil inventories rose by 830,000 barrels in the week to June 8, to 433.7 million.

Saudi Arabia last month signaled it was ready to boost output in the second half of the year to ease consumer anxiety about higher prices, a policy U-turn for the kingdom that only weeks earlier advocated for production restraint. 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. Russia's production was 11.1 million barrels a day in June, exceeding its quota, according to sources familiar with the matter.

The full organization, plus non-members like Russian Federation who agreed to take part in the earlier round of production cuts, are meeting June 22 and 23 in Vienna.

US ally Saudi Arabia remains OPEC's most powerful member - with enough production capacity to manipulate global supplies.

But the Paris-based IEA, echoing statements from oil producers as well as analyst comment in recent weeks, said there may be a change to the so-called Vienna agreement. "Unofficial sources have said Russian Federation will propose to return production back to the October 2016 (level), i.e. removing the cap altogether over a period of three months".

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.

Rising US stocks are in part a result of the surge in US crude oil production, which has jumped by nearly a third in the last two years to a record 10.8 million barrels per day (bpd).

Fund manager Pierre Andurand at Andurand Capital is bullish.

Share

Advertisement

Related Posts

Trump ‘can’t jump ahead’ in North Korea negotiations: Leon Panetta
Under the circumstances we are negotiating a complete deal", Trump said , adding "It is inappropriate to have war games. All of the concessions KCNA claims Trump made are also things China has said publicly it wants.

Google Home Can Now Perform Up to Three Commands Simultaneously
With there being a number of digital assistants to choose from, each is now focusing on becoming smarter than the competition. Google has not yet announced this feature officially, as the support page still says that it's limited to two commands only.

George and Charlotte goof off at William's polo match
Okay, okay, slight exaggeration but it is refreshing to see the royal family having a day out just like anyone else. The trio had a lovely time, with photographs showing them running around and smiling throughout the sunny event.

Personal internet use could change as 'net neutrality' ends
Most have service terms that specify they won't give preferential treatment to certain websites and services, including their own. The change comes as broadband and cellphone providers expand their efforts to deliver video and other content to consumers.

PM: G7 was "difficult" as Trump pushes back over Russian Federation and tariffs
Heyman waged a campaign on Twitter to persuade Navarro to apologize by saying he was contacting US politicians about his remarks.

South Korea alarmed after Trump says no more war games
Mr Trump's comments suggests he had accepted President Kim's position that the drills were a hostile provocation. A hawkish army commander, he has steered a series of inter-Korean military talks since the late 1980s.

Toyota makes record $1 billion investment in ride-hailing firm Grab
It also has Southeast Asia's biggest land transportation fleet, delivering over six million rides per day. The US$1 billion sum is the largest-ever investment globally by an automaker in the ride-hailing sector.

Valve And Perfect World Games Announce Steam China
The very first thing that you may notice is that the chat interface is now detached from the main interface. Plus, all chats now display images, videos, tweets, and links inline in a rich, handsome way.

Same-sex couple accuse Uber driver of kicking them out for kissing
As they were crossing the Manhattan bridge, Iovine said the couple leaned over to share a quick kiss. "She thought he was joking". She said they were in lower Manhattan when the driver pulled over, opened a rear door and ordered them to "get out of my auto ".

North American trio beats Morocco to host 2026 World Cup
The key number is 104 but there is also the freakish and unprecedented scenario where both bids get rejected. Instead of three automatic places in the tournament, six will be given by that time.

© 2015 ExpressNewsline. All Rights reserved.