Tuesday, 13 November, 2018

INTERNATIONAL - Iran slams Trump's 'interfering' remarks on OPEC

Trump’s order for OPEC to reduce prices is insulting – Iranian oil minister A gas station in the Bronx
Ginger Lawrence | 11 July, 2018, 15:42

On Wednesday, Trump said OPEC is "driving oil prices higher", urging the cartel to reduce the price at the soonest.

Washington's withdrawal from the landmark Iran nuclear deal was widely criticized across the world.

As India mulls to cease oil imports from Iran and rather import crude oil from Saudi Arabia and the US, Iran has issued stringent warnings to India.

They argued that since Saudi Arabia had never pumped more than 10.6 million bpd, could it now increase production and make up for any missing Iranian volumes?

Trump recently said that Saudi Arabia had agreed to increase oil production by up to 2 million barrels per day (bpd) to moderate high prices.

An increase in supply will reverse some of the output cuts that OPEC and other major producers put in place in early 2017 to end several years of supply glut. If Trump really wants to reduce oil prices in America, he should start there. "Saudi Arabia, and OPEC more broadly, would lose its key lever on the global oil market, which would leave prices heavily exposed in the case of an additional supply shock", the analysts added.

U.S. steps up China trade spat with $200bn new tariffs
The International Monetary Fund has warned that a full-blown trade war could undermine the broadest global upswing in years. He added the USA is ready to target an additional $200 billion, and then $300 billion more should Beijing retaliate.

USA energy companies this week added oil rigs for the first time in three weeks but the rate of growth has slowed over the past month or so with a decline in crude prices from late May through late June. Two other sources also said South Korea cancelled July loadings of crude and condensate cargoes from Iran as it was uncertain whether they can receive an exemption from US sanctions on Iran trade.

On Saturday, a petroleum ministry official told state-run IRNA news agency that the US sanctions against Iran's oil exports will weaken the OPEC.

Now, President Trump is threatening sanctions against any country that continues to do business with Iran.

Perhaps no one told him that Iran was a founding member of OPEC? "South Korea overall is lifting zero oil (from Iran) for July loading".

Oil prices rose on Tuesday on escalating concerns over potential supply shortages, with Brent crude leading the way as hundreds of oil workers in Norway were set to strike later in the day.

South Korean refiners have since curtailed their Iranian oil purchases and turned to alternative sources such as American and African crude due to expensive Middle East grades and uncertainty over trade with Iran.