Donald Trump's Tweets Increased Oil Prices By $10, Iran's OPEC Chief Says

Donald Trump's Tweets Increased Oil Prices By $10, Iran's OPEC Chief Says

Crude was already down for the day affected by a warning from US President Trump to OPEC countries to reduce prices. If anything, they are driving prices higher as the USA defends many of their members for very little $'s.

"This must be a two way street", he wrote, adding in block capitals, "REDUCE PRICING NOW!"

But not all analysts foresee crude prices remaining at current levels: NAB said its oil price forecasts "point to Brent spending the next few months largely in the mid-to-high $70s [per barrel] range, although meaningful OPEC-Russia output increases could push prices lower later in the year and higher US shale production should impose an upside limit on West Texas Intermediate".

Outside of OPEC, Russia has been eager to churn out more oil, though it could be bound to its partnership in the group's pledge to stabilize the market. "A blockade of this transport route would thus have dramatic consequences for global oil supply and an impact on prices that is nearly impossible to put into figures". "He has agreed!" Trump tweeted early on Saturday.

Yet despite Riyadh voicing support for Trump, Saudi Arabia may find it tough to compensate for future losses from Iran and persistent supply disruptions from Libya and Venezuela.

Even with Saudi Arabia offering market assurances, concerns about dwindling spare capacity could push oil prices above $80 per barrel, Swiss bank UBS said.

US crude futures gained 86 cents, or 1.2 percent, to settle at $73.80 a barrel. Brent crude futures were up 11c at $78.35 a barrel. "We also expect Venezuelan production to decline a further 150,000 bbl/d towards year-end, with risks still skewed to the downside", Bjørnar Tonhaugen, vice president of oil market research at Rystad Energy, said. "Their companies - their companies will be subject to the same sanctions that everybody else's are if they engage in those sectors of the economy that are sanctionable, where there were sanctions imposed prior to 2015", the unnamed U.S. State Department Official told the media on June 26.

Inventories at Cushing, Oklahoma, the delivery point for US crude futures, fell to their lowest level since December 2014. If so, such a boost would be significant for the country's oil production, which hit 10.03 million barrels per day (bpd) in May.

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.

Prices have risen as a result of Washington's plans to reimpose sanctions against Iran, OPEC's No. 3 producer, analysts said. While the comments were ambiguous, Iranian officials in the past have threatened to block the Strait of Hormuz, a major oil shipping route, in retaliation for any hostile United States action.

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