Oil falls as Trump urges OPEC to reduce prices

US oil touches $75 amid fears Iran will block Middle East shipments

US oil touches $75 amid fears Iran will block Middle East shipments

US President Donald Trump, for one, isn't happy with the high prices US voters are paying to fill up their cars.

Later speaking to Reuters, the Iranian declared that oil prices will rise to United States dollars 100, and it will all be Trump's "fault". The logic is odd though.

The market was expecting "higher exports and lower imports, but we got the reverse", said Rob Thummel, managing director at Tortoise, which handles $16 billion in energy-related assets.

At their meeting in Vienna last month, OPEC countries and key ally Russian Federation said they will raise production by a million barrels per day, but analysts are concerned it may not be enough for oil prices to spiral out of control, at least until new USA shale production comes on stream.

Production at Syncrude Canada's 360,000 barrels per day (bpd) oil sands facility near Fort McMurray, Alberta, was hit by a power outage last month and is likely to remain offline through July, helping drain US inventories. "Perhaps one of the USA president's advisors should explain this to him", the German financial institution added. It had urged Trump to withdraw from the deal with its rival Iran.

"You are hammering on good guys in OPEC".

Involuntary drops in supply in Venezuela, Angola and Libya have made the cutbacks even bigger, although OPEC has now started to ease those curbs with Saudi Arabia pumping more.

China says the "largest trade war in economic history" just began
Hardliners such as Peter Navarro, a trade policy adviser, says the U.S. is defending itself against an "aggressive" China. Beijing said it had no choice but to respond in kind, but was yet to outline the full extent of any retaliatory measures.

Hossein Kazempour Ardebili, Iran's ambassador to the Organization of the Petroleum Exporting Countries (OPEC), was quoted by media as saying that the world - and specifically American consumers - would eventually consider Trump blameworthy for runaway oil prices in global markets. And then, Halff added, Trump assumed "that the increase in prices has nothing to do with the United States when the price increase is to some degree self-inflicted since it is driven by concern about the removal of Iranian barrels from the market". "Please stop it; otherwise it will go even higher".

Meanwhile, the U.S. Congress has revived legislation that would remove the immunity that sovereign nations have from being sued from antitrust violations.

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

Trump late on Wednesday accused the Organization of Petroleum Exporting Countries (OPEC) of driving up fuel prices. "Do something about it!" He tweeted blaming Obama of the increase in oil prices saying he [Obama] could stop it! The group is starting to lose control of the oil market now that the supply outages are piling up. However, Brent slipped yet again after Saudi Arabia announced that it raised output almost by 5,00,000 barrels per day in June to curb scarcity. Saudi Arabia's all-time record high output level stands at about 10.7 mb/d.

Producing at that level would require more drilling and expanding existing fields - it isn't as simple as just opening the taps. With this, Saudi Arabia cements its position as the Central Bank of oil. The 12 OPEC members with supply reduction targets increased output by 680,000 bpd compared to May. That means there's a shrinking buffer to protect against the shocks like the eventual loss of Iranian oil or a hurricane in the U.S. Gulf of Mexico.

OPEC and Russian Federation announced in June they were willing to raise output to address concerns of emerging supply shortages due to unplanned disruptions from Venezuela to Libya, and likely also to replace a potential fall in Iranian supplies due to U.S. sanctions.

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