Trump presses OPEC to reduce prices as crude trades near $80

      Published on Sunday, 23 September , 2018      1 Views      Comments Add Comment
Trump presses OPEC to reduce prices as crude trades near $80


US President Donald Trump resumed his criticism of OPEC, saying on Twitter that the cartel “must get prices down now!”

Trump’s fresh intervention in the oil market comes before a meeting of ministers from the Organization of Petroleum Exporting Countries and its allies in Algeria on Sunday.



His complaint follows signals from Saudi Arabia that it was content to see prices climb above $80 a barrel. That’s been a red line for the White House in the past, provoking the president to direct his first social-media barb against the cartel since July 4.

Brent crude futures were 0.6 percent lower in London, erasing an earlier gain of as much as 0.5 percent to trade at $78.92 a barrel at 1:07 p.m. local time.

Trump’s tweet makes sense “with oil prices close to the highs of the year,” said Giovanni Staunovo, commodity analyst at UBS Group AG. “Considering the upcoming OPEC meeting in Algiers, he wants to keep pressure on the group ahead of the mid-term elections.”

The president is returning to a playbook that’s won him significant victories already this year. His first attack on OPEC came on April 20, just hours after Saudi Arabia’s Oil Minister Khalid Al-Falih said that OPEC would continue its production cuts so that oil prices could rise further.

Within a month, the kingdom had performed a dramatic U-turn and by June the cartel and its allies were promising to add 1 million barrels a day to the oil market.

Prices dipped as low at $70 in London in August, but have since risen as American sanctions began to significantly curb Iran’s oil exports.

While Saudi Arabia and Russia have recently boosted output to compensate, it’s unclear whether they’re willing or able to offset all the losses from Iran.

Saudi Arabia is now comfortable with Brent oil prices rising above $80 a barrel, at least in the short term, as the global market adjusts to the loss of Iranian supply, people familiar with the kingdom’s view said this week.

The change in the kingdom’s view on prices coincided with some intense oil diplomacy. In the last two weeks, Al-Falih has met his counterparts from Russia and the US, Alexander Novak and Rick Perry, to discuss the oil market and the impact of US sanctions on Iran. It’s unclear, however, whether the Saudis discussed prices with Russian and American officials.

Saudi Arabia has markedly increased oil exports to America, a sign OPEC’s leading producer is responding to pressure from Trump.



Earlier this month, Saudi shipments into the US reached a four-week average of 1 million barrels a day for the first time since late 2017, according to government data.

Keywords:
Category World News | 2018/09/23 latest update at 7:00 AM
Source : Arabian Business | Photocredit : Google
2 Views
Comments Add comment



Related Articles

The editorial staff of Saudi Arabia Today would like to give all of its readers from Gulf and Saudi Arabia and the whole world the opportunity to participate actively in the development of the website! If you have something interesting, fun, scandalous - just something worth to be seen from more people. Capture it and share it in the Saudi Arabia Today with a short text.

Do you have information you want to reach our readers?

Send article/s

You can subscribe to our Facebook, Twitter and Google pages or use our RSS feed channel to always read the most important news about Saudi Arabia, the Gulf and the world.


Sponsored Publications


Latest Comments


King Salman: Iran creates chaos devastation in the region Gulf TV, Saudi Arabia

King Salman: Iran creates chaos devastation in the region

SaudiArabia’s King Salman said that #Iran creates chaos and devastation in the region, interferes in surrounding countries’ internal…

Saudi Arabia King Salman meets president of Niger at Riyadh palace King

Saudi Arabia King Salman meets president of Niger at Riyadh palace

King Salman met the President of Niger, Mahamadou Issoufou, at his palace in Riyadh on Monday. The leaders held talks on boosting…

King Salman unveils $35.6 billion project for industrial city King

King Salman unveils $35.6 billion project for industrial city

Boosting the country’s mining infrastructure, Saudi Arabia has unveiled a SAR 86 billion ($35.6bn) project, Wa’ad Al Shamal,…

King Salman First Time Speaks About Jamal Khashoggi Gulf TV, Saudi Arabia

King Salman First Time Speaks About Jamal Khashoggi

King Salman First Time Speaks About Jamal Khashoggi

GULF TV

Popular in GULF TV

Turkey Seeks Arrest of Two Saudi Crown Prince MBS Allies Over Khashoggi

207 Views

Turkey Seeks Arrest of Two Saudi Crown Prince MBS Allies Over Khashoggi

Latest videos in GULF TV

Events

Lifestyle

Culture

Sport

Science & Technology

Government