Trump Declares Oil Prices 'Too High,' Blames OPEC

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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.

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