Oil rises ahead of Opec meeting

Oil rises ahead of Opec meeting

Oil rises ahead of Opec meeting

Trump resumed his attacks on OPEC Thursday morning amid oil prices that have climbed to their highest level in two months.

Oil prices fell after Trump's tweet, with the price of West Texas Intermediate crude oil - the U.S. benchmark - falling to a low of $70.86 a barrel, a drop of about 0.58%.

Analysts argued that the continued drawdowns in oil stockpiles, even though we are past the summer driving season, are a result of increased USA crude oil exports, which have been supported by the widening differential between USA benchmark WTI prices and the global benchmark, Brent crude.

"We will remember. The OPEC monopoly must get prices down now!" OPEC was blind to the danger at first, then downplayed the risk even as some members raised the alarm - reasoning that shale was an expensive business and the cartel simply had to bide its time.

Global energy companies reduced their debt for seven quarters running in the second quarter of 2018, cutting their long-term debt-to-equity ratio to the lowest since the third quarter of 2014, when oil prices started crumbling, the EIA said in its Q2 2018 financial review of 107 oil and gas companies worldwide, including 76 USA companies.

Trump has imposed sanctions in response to Iran's nuclear program that are to go into full effect on November 4.

U.S. President Donald Trump weighed into the debate via Twitter on Thursday, urging OPEC to cut prices.

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"Any country that says it can make up for the shortfall in the market is siding with the U.S.", Zanganeh told reporters in Tehran. "Considering the upcoming OPEC meeting in Algiers, he wants to keep pressure on the group ahead of the mid-term elections".

"I don't know why he would do anything here", McKinnon said.

Zanganeh said he won't be attending the Algerian JMMC meeting, which is to occur just days before the two-year anniversary of OPEC's decision to pare production and curb a glut.

On the other hand, Brent crude is also supported thanks to concerns regarding OPEC supply. While Saudi Arabia and Russian Federation have recently boosted output to compensate, it's unclear whether they're willing or able to offset all the losses from Iran. Disruptions to Iranian production stemming from US sanctions are being given credit for the discrepancy.

Russian Federation has increased its productivity by more than 200,000 bpd (barrels per day).

Trump seemed to threaten the withdrawal of United States military resources from the Middle East if OPEC members in the region didn't work to lower prices. Saudi Arabia, which indicated on Tuesday that it would be happy to see Brent crude prices rise to $80 a barrel, also may be ready to reduce supplies or, at least, take no action to make up any supply deficits.

After languishing at less than 6million barrels of oil per month between 2000 and 2011, American oil production began rapidly increasing from 2012 onwards.

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