Sunday, 26 May, 2019

Trump Declares Oil Prices 'Too High,' Blames OPEC

Trump renews attack on OPEC ahead of group's production meeting Trump Declares Oil Prices 'Too High,' Blames OPEC
Ginger Lawrence | 14 June, 2018, 09:38

An oil production shortfall in Iran and Venezuela may force OPEC and Russian Federation to decide later this month to open their taps, the International Energy Agency said Wednesday.

But it's more complicated than that.

The U.S. has lobbied Saudi Arabia and other members, arguing they need to raise output by 1 million barrels a day to keep prices in check, people told Bloomberg News earlier this month.

On Wednesday, the national average for a gallon of regular stood at $2.91, up 25 percent from a year ago, according to the AAA auto club.

Global oil demand is expected to increase next year, according to a first estimate from the International Energy Agency (IEA), despite lower production coming from some leading producers.

Shortly after Trump's tweet on Wednesday, Senate Minority Leader Charles E. Schumer, D-N.Y., took to Twitter to respond.

OPEC is the Organization of Petroleum Exporting Countries. In late May, that decline reversed and the price oil declined as Russian Federation and Saudi Arabia indicated a willingness to accept lower prices. They have shown discipline in limiting production since the start of past year, helping push up the benchmark price of worldwide crude.

"However, even if the Iran-Venezuela supply gap is plugged, the market will be finely balanced next year, and vulnerable to prices rising higher in the event of further disruption".

Oil prices dropped on Wednesday as a result of increased supplies in the U.S.

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Some estimates put the post-crash reduction in investment by major oil companies such as Exxon Mobil, Chevron and BP at more than $1 trillion. Flynn compared that to eliminating the fourth-largest oil producer in the world.

Still, U.S. output is now above that of top exporter Saudi Arabia, which currently churns out slightly above 10 million bpd. OPEC members include Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.

The deal, which is due to run out at the end of 2018, has succeeded in boosting oil prices above $70 a barrel from below $30 a barrel in early 2016.

USA companies have filled some of the gap created by Venezuela, OPEC and non-OPEC producers including Russian Federation. He also chronicled Maryland government for more than a decade.

Domestic production rose to 10.9 million barrels per day up from 10.8 million bpd in the week prior, EIA said. "Not good!" the U.S. president said on Twitter.

OPEC is under scrutiny in Congress, too.

"It's confusing why the president would come out with a statement like this now", Smith said. Its main concerns are higher oil prices and trade disruptions.

Democrats are trying to blame Trump for higher gasoline prices, sensing the issue will resonate with voters in the November midterm elections that will determine control of the House and Senate.