Trump, Iran spar over oil prices ahead of OPEC meeting

Andrew Cummings
June 16, 2018

In part because of strong demand, United States crude inventories fell by 4.1 million barrels in the week to June 8, to 432.4 million barrels.

And a fifth OPEC source said that if OPEC decided next week to raise output it would not be with "immediate effect" and would be gradual, suggesting supply would not rise for three to four months after a June decision.

Russia's Novak, for his part, said today that the ministers of the OPEC and non-OPEC producers could consider gradually reversing up to 1.5 million bpd of combined production.

Cumulative crude oil output from Nigeria's oil industry decreased from 1.88million barrels per day (mbd) in April to 1.73 mbd in May, indicting steady decline as host community issues and social instability in operating environment begin to impact production.

"We shouldn't exaggerate the need of the oil market for more oil at the present time, and which could cause great damage to global markets", Mr Jabbar said.

"Recently, crude oil futures have lost some momentum amid uncertainty as traders prepare for potentially more supply returning to the market", said the report.

Brent crude oil LCOc1 lost 80 cents to settle at $75.94 a barrel, while West Texas Intermediate crude CLc1 gained 25 cents to settle at $66.89.

India and China are discussing ways to boost imports of U.S. crude to Asia, a move aimed at reducing their dependence on cargoes from members of the Organization of Petroleum Exporting Countries, according to an Indian government official.

Although Saudi Arabia has benefited from oil's rally over the last two years, the government relies on a strong security relationship with the us, giving Washington some influence in the debate over OPEC policy.

Opec's second-biggest producer said supply curbs by the cartel haven't yet achieved their objective, with oil prices still below the desired level.

Now, there are growing tensions over the cuts and pressure is growing on OPEC - from the likes of President Donald Trump - to increase supply to prevent prices from rising too steeply.

Official US production and inventory data is due to be published on Wednesday by the Energy Information Administration (EIA).

In the letter, the senators said a run-up in oil prices is "effectively a tax on every American family's discretionary budget" since the price of oil directly affects the price of gasoline.

Oil prices have eased slightly in recent weeks.

Longer term, the market could tighten as demand increases if OPEC fails to cover supply shortfalls, the International Energy Agency said.

OPEC is set to meet in Vienna, Austria, from June 22-23, where analysts anticipate that oil supply will be increased again.

With output in Russian Federation rising back above 11 million bpd in June and Saudi production climbing to more than 10 million bpd, supplies from the top three producers are increasing.

Saudi Arabia has floated several plans to fellow OPEC members as the kingdom seeks consensus before the meeting in Vienna next week.

"I think we'll come to an agreement that satisfies most importantly the market".

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