President Trump Throws Hail Mary Tweet On Eve Of OPEC Meet

Andrew Cummings
December 6, 2018

The measure is aimed at controlling global oil prices that have seen a dramatic crash of more than 30 percent over the last two months, placing the budgets of oil-exporting nations under considerable pressure.

The delegate said both countries had made significant production output since the current deal went into force in January 2017, and it was time for them to "contribute".

Their summit begins Thursday.

Donald Trump has often complained about OPEC this year as higher crude oil prices have raised fuel cost.

The oil-rich kingdom had indicated previously that it wanted the group to curb output by at least 1.3 million barrels per day.


Oil prices were pressured by a weekly report from the American Petroleum Institute (API) that said USA crude inventories rose by 5.4 million barrels in the week to November 30, to 448 million barrels, in a sign that U.S. oil markets are in a growing glut.

OPEC delegates on Thursday said the group would make a planned cut in oil output conditional on the contribution from non-OPEC producer Russian Federation.

In a sign of easing tensions between the world's two biggest economies, Chinese oil trader Unipec plans to resume USA crude shipments to China by March after the Xi-Trump deal at the G20 meeting reduced the risk of tariffs being imposed on these imports, people with knowledge of the matter said.

"We don't need permission from anyone to cut", he said.

In October, the oil price reached a four-year high of $86, but since then the price has dropped again to about $60 per barrel.


The United States is not part of any output-limiting initiative due to its strict anti-trust legislation and fragmented oil industry.

Oil prices have fallen by nearly a third since October to around $62 per barrel after Saudi Arabia raised production to make up for the drop in Iranian exports.

However, when oil producers realized the sanctions fell far short of what had been expected, fears of oversupply followed. Trump wrote in a tweet on Wednesday. "Being too cautious on the words, to please President Trump, runs however the risk of diluting the message", said Olivier Jakob from Petromatrix consultancy.

"If Mr. Hook has come to Vienna to apply for USA membership in OPEC, and this is the reason why he meets OPEC members, the request can be reviewed", Zanganeh told SHANA.

This story has been published from a wire agency feed without modifications to the text.


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