Trump’s tweets have added $10 to oil prices, Iran’s OPEC boss says

Jul 08, 2018, 08:02
Trump’s tweets have added $10 to oil prices, Iran’s OPEC boss says

Hossein Kzempour Ardebili said in the wake of Trump's latest criticism of OPEC that the president's tweets "have driven the prices up by at least $10 per barrel".

Trump's administration has been a firm supporter of Saudi Arabia, signing a $110 billion defense deal during his first full year in office.

Ardebili's accusations came as oil prices have surged in recent months. As the 2018 mid-term elections loom, Trump's threat to the Saudi-led OPEC oil cartel is a sign to voters that he's doing something about rising prices at the pump (even if it's just sending tweets). His latest was a reminder that the U.S. defends many OPEC members for "very little" money. "REDUCE PRICING NOW!" Trump wrote on Twitter.

Ardebili also noted that Trump is impolite in his rhetoric, and Middle Eastern producers never respond in the USA president's style. You impose sanctions on major producers, founders of OPEC.

"A key driver of the rise in prices has been the OPEC-Russia deal to cut oil output, compounded by collapsing Venezuelan production and the U.S. decision to end the Iran deal", National Australia Bank (NAB) said in its July outlook.

"Trump's demand that Iranian oil should not be bought, and (his) pressures on European firms at a time when Nigeria and Libya are in crisis, when Venezuela's oil exports have fallen due to USA sanctions, when Saudi's domestic consumption has increased in summer, is nothing but a self harm", he was quoted as saying by Reuters. If Iranian production is removed from the global market, oil supply will slump by around 2.5 million barrels per day. Many coutries have not committed to the USA ban, and if prices rise, Iran may ultimately take in just as much money even with fewer exports.

President Donald Trump has again lashed out at an global body - this time, it's the Organization of the Petroleum Exporting Countries (OPEC), which he accused Wednesday afternoon of driving up gas prices.

However, he added, "It's at the same time a request for oil and an accusation and a berating, which makes one wonder what is the real message".

Oil prices have been buoyed by tightening supplies this year but there are signs demand may now be easing.

Outside North America, looming US sanctions against major oil exporter Iran were the focus of attention.

Chinese stocks fell sharply on Tuesday, with equity markets in Asia near nine-month lows as investors fear the Sino-U.S. trade row could derail a rare period of synchronized global growth.

Foreign ministers from the five remaining signatories of a nuclear deal between Tehran and world powers will meet Iranian officials in Vienna to discuss how to keep the accord alive after the USA withdrawal from the pact.

Maloney said that "Trump's uncompromising sanctions enforcement will deepen Washington's falling-out with allies in Europe". At the same time- racked by internal crises-Libya and Venezuela are also struggling to meet their outputs.

It turns out the reason is to be found in an article published moments ago by Al Jazeera, according to which the Saudis "have agreed to U.S. demands to pump more oil", and which quoted the official Saudi Press Agency that Saudi Arabia's cabinet on Tuesday "endorsed the kindgdom's readiness to pump more oil to maintain market balance and stability".

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