Published: Fri, July 06, 2018
Money | By Hannah Jacobs

Trump To OPEC: 'Reduce Pricing Now!'

Trump To OPEC: 'Reduce Pricing Now!'

Trump again accused the Organization of the Petroleum Exporting Countries of driving fuel prices higher on Wednesday, and urged USA allies such as Saudi Arabia to pump more if they wanted Washington to continue protecting them against their top foe Iran.

"The OPEC Monopoly must remember that gas prices are up & they are doing little to help". In late morning trading, the price of the global benchmark Brent grade of crude oil was little changed at $77.85 a barrel.

The cartel agreed in...

Trump's scramble to slow down the oil rally comes four months ahead of United States midterms, where analysts say rising gas prices could hurt Republicans.

Trump, who is mindful of what impact rising gas prices at station pumps will have on American voters heading into the crunch November midterms, responded on Twitter: "Hope OPEC will increase output substantially".

"Because it's driving season, you expect a lot of crude to go through refineries right now - so that's why we were looking for a draw", said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut.

Despite that key member Saudi Arabia is affirming that the group and its allies will boost output, Goldman Sachs Group Inc. warned that oil is likely to lead a new rally as the market faces significant supply risks from Venezuela to Iran.

More so, expectations of a drop in the United States crude stockpiles due to be published by the EIA later on Thursday, following the bullish API crude inventories report, helps underpin the sentiment around the barrel of WTI.

Iran OPEC Governor Hossein Kazempour Ardebili said President Donald Trump's tweets have driven up oil prices. This must be a two way street.

OPEC and Russian Federation said in June they were willing to raise output to address concerns of supply shortages due to unplanned disruptions from Venezuela to Libya, and likely also to replace a potential fall in Iranian supplies due to USA sanctions.

The president's call to "reduce pricing" was an apparent reference for oil producers to churn out more supply in order to contain spiking oil prices.

Considering that the pushing for "zero" Iranian oil exports and is pressing other countries to stop importing Iran's oil, Tehran may not have many countries left to trade with.

OPEC, together with a group of non-OPEC producers led by Russian Federation, reduced output in 2017 to prop up the market. For many households, the gains from cuts passed previous year have been offset by the rise in oil prices since 2016.

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