Oil falls as Saudi, Russian output rises

Jul 03, 2018, 11:42
Oil falls as Saudi, Russian output rises

Trump continued, "prices too high!"

Iran announced on Sunday that it would permit private companies to export crude oil as Tehran attempts to thwart USA sanctions against the country's oil industry.

"Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & dysfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference", Trump wrote on Twitter.

The White House later walked back the president's comments, saying the king had said his country could raise oil production if needed.

Saudi Arabia's output is up by 700,000 barrels per day (bpd) from May, a Reuters survey showed, and close to its 10.72 million bpd record from November 2016.

"Recurring salvos in the trade war and falling asset prices raise the question of how much tariffs could damage the global economy", U.S. bank JPMorgan said.

Despite the space Washington is prepared to grant these and other nations working with Iran, Hook insisted the Trump administration would not provide exemptions and was intent with fully charging forward with its current plan.

It comes as Mr. Trump pulled the US out of Tehran's nuclear deal with world powers in May.

Iran's crude production was around 3.8 million barrels per day in May, according to OPEC's Oil Market Report for May. "They seek to push Iranian exports of crude, condensate, and oil products to zero", energy consultancy FGE said in a note.

Oil production, prices and politics require a delicate balance.

On Fox, Trump directed blame at the Organization of the Petroleum Exporting Countries, of which Saudi Arabia is the biggest producer.

Trump will visit Europe this month for a meeting with North Atlantic Treaty Organisation allies, whom he has criticized sharply as paying too little for their joint defense. Trump has imposed tariffs on steel and aluminum in response to what he calls unfair trade practices from Europe, Canada, and other allies around the world, who have responded with retaliatory sanctions in kind.

The bank said a "medium-intensity (trade) conflict would likely reduce global economic growth by at least 0.5 per cent, "before accounting for tighter financial conditions and sentiment shocks".

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