Oil slips towards $77 as Saudi boost, trade tensions weigh

Posted July 09, 2018

US President Donald Trump took to his Twitter handle to lambast the Organisation of the Petroleum Exporting Countries (OPEC), demanding them to do more to reduce oil prices 'NOW!'

NAN reports that on Twitter, Trump called on OPEC countries, fresh from a meeting in which they made a decision to raise oil output by an indeterminate amount, to do more to bring down crude prices. Irritated by what he feels is a lack of cooperation from the Saudis who head OPEC, added: "If anything, they are driving prices higher as the United States defends many of their members for very little $'s".

Speaking to the Wall Street Journal, Michael Cohen, Head of Energy Commodities Research at Barclays, said the market was now "caught between two forces". The bank said that US efforts to block Iran from exporting oil would make it hard for OPEC to meet supply demands, forcing prices to rise.

"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 USA decision to end the Iran deal", National Australia Bank (NAB) said in its July outlook. "Please stop this method".

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Brazil will be without Casemiro, who is suspended after picking his second yellow card of the tournament. Evidence of such quality, however, was in short supply in the early stages of their game with Japan.

"Political issues should not interfere in the crude market, and supply and demand should determine the final oil price", Bijan Namdar Zanganeh said, Press TV reported on Saturday.

The head of Iran's Revolutionary Guards said on Thursday their forces were ready to implement Iran's threat to block the Strait of Hormuz and that if Iran can not sell its oil under the US pressure, no other regional country will be allowed to.

Oil prices have risen to multi-year highs of around $78 per barrel in recent days.

U.S. crude stockpiles rose 1.3 million barrels last week, according to U.S. Energy Information Administration data.

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Russia , meanwhile, will face Group B winners Spain after last night's 2-2 draw with Morocco. Gimenez scored in the team's opening match of the tournament, a 1-0 victory over Egypt .

US crude futures were up 19 cents at $74.33 a barrel, within sight of Tuesday's 3-1/2-year high above $75 a barrel.

"You are hammering on good guys in OPEC", Kazempour said, according to Bloomberg.

Trump indirectly linked US foreign policy to his demand, saying the USA defends some oil producing countries "for very little" money. Morgan Stanley raised its Brent crude forecast to US$85 a barrel through to the third quarter of 2019, citing a tighter market than previously anticipated.

"Increased Saudi crude availability that is being enhanced by reduced OSPs (official selling prices) into Europe and other regions is providing a strong counter against curtailed Libyan export activities", Ritterbusch wrote.

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La Albiceleste lost 3-0 to Croatia on Thursday leaving them in a precarious position to qualify for the knockout stages. That irked the French team, and coach Didier Deschamps said the comments were "not something particularly pleasant".

"REDUCE PRICING NOW!", Trump tweeted on Wednesday, accusing OPEC of "doing little to help" lower pump prices. And while US shale oil production continues to rise, global demand for oil remains strong.