Oil Near $74 Amid Trump Tweets, Forecast Drop in US Stockpile

Anna Jefferson
July 9, 2018

Saudi Arabia's state-run oil giant cut its prices on Thursday for first time since February after President Donald Trump lashed out at OPEC for rising U.S. gas prices.

On Wednesday, the USA president again accused the OPEC of driving fuel prices higher and urged U.S. allies such as Saudi Arabia to pump more.

Speaking to the Wall Street Journal, Michael Cohen, Head of Energy Commodities Research at Barclays, said the market was now "caught between two forces".

OPEC members agreed June 23 to increase crude oil output by pumping 1 million barrels more daily, but it is still unclear how much of the oil produced would ease off prices in a period-the northern hemisphere's summer-generally associated with high oil demand.

The White House said Saturday that Saudi Arabia's King Salman bin Abdulaziz Al Saud agreed to raise output after the Trump administration ordered all countries to stop buying oil from the Islamic Republic by November or face United States sanctions, as part of Trump's withdrawal from the Iran nuclear deal.

OPEC, together with a group of non-OPEC producers led by Russian Federation, reduced output in 2017 to prop up the market. "REDUCE PRICING NOW!" Trump concluded the tweet.

Trump Narrows Supreme Court Pick, Announcement Coming MONDAY — THREE LEFT
Susan Collins of ME affirmed to reporters Wednesday she will not affirm a nominee with "demonstrated hostility" to Roe v. The prominent Obamacare opponent wrote a Fox News op-ed on Thursday urging the president to appoint conservative Sen.

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.

While OPEC leader Saudi Arabia will pick up the slack, Morgan Stanley believes oil markets will be undersupplied by around 600,000 in the second half of 2018.

USA crude futures gained 86 cents, or 1.2 percent, to settle at $73.80 a barrel.

Brent for September settlement lost 52 cents to $77.72 a barrel on the London-based ICE Futures Europe exchange.

Ardebili also told Trump, "You are hammering on good guys in OPEC".

US markets also garnered support from a government employment report showing better-than-expected growth in jobs.

Stats: Aaron Finch chases down his record T20I score against Zimbabwe
Short hit a sedate 46 off 42 balls before he was first dismissed by Blessing Muzarabani, off the second ball of the final over. Australia forged history by registering the first-ever 200-run partnership in the shortest format of the game.

USA budget analysts generally look at the impact of tax changes over a ten-year period ("Estimated budget effects of the conference agreement for HR 1", Joint Committee on Taxation, Dec. 18, 2017).

Spare capacity, especially from OPEC countries, is an important measure by analysts to determine major oil exporters' ability to respond to rising demand.

Oil prices have risen in the past 12 months to a peak in late June and early July.

Writing on Twitter Wednesday, the US President said OPEC is doing little to help.

"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 United States decision to end the Iran deal". An Iranian Revolutionary Guards commander warned that Iran might blockade the narrow, strategic Strait of Hormuz if Trump stopped oil exports, a move some considered unlikely since Iran's own imports pass through the Strait.

3-year-old dies after being stabbed at own birthday party
Ibod Hasn, center, talks to a friend who came to visit after Saturday's stabbing attack in Boise, Idaho , Sunday, July 1, 2018. The attack came Saturday night at a low-income apartment complex that is also home to refugee families from around the world.

Other reports by

Discuss This Article