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

Selfie-taking couple in fatal cliff fall identified
Reports said two Australians may have been taking selfies when they fell about 30 metres in the town of Ericeira. While investigations continue, Corfina Media reported police have ruled out murder as a possible cause of death.

Geraint Thomas wins Criterium du Dauphine
Yates said: "The Tour de France has been my main goal for the whole season". Emanuel Buchmann (GER/BOR) 14, 5. Pierre Latour (FRA/ALM) 35, 10.

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.

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.

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.

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.

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.

Dixons Carphone discovers unauthorised data access
We promptly launched an investigation, engaged leading cyber security experts and added extra security measures to our systems. He said: "Today's breach of Dixons data will have far reaching consequences for some time".

How Did a Tick Temporarily Paralyze a Little Girl?
While combing her daughter Kailin's hair , she noticed a tick on her scalp, Griffin told Mississippi News Now . Fun and laughter aside, Jessica wants her readers to be aware that tick paralysis is both real and risky .

Raptors hire Nick Nurse as new head coach
Toronto fired Dwane Casey on May 11 after the team was swept by the Cleveland Cavaliers in the Eastern Conference semifinal. ESPN's Adrian Wojnarowski reports that the Raptors are hiring current Raptors assistant Nick Nurse as their new coach .

© 2015 ExpressNewsline. All Rights reserved.