Donald Trump reignites Opec spat over 'too high' oil prices

Cornelia Mascio
Giugno 14, 2018

OPEC, a group of 14 oil-producing nations, is expected to meet again later this month.

In terms of supply, two big variables are Venezuela and Iran.

The agency is forecasting global oil demand will grow by 1.4 million barrels per day (bpd) in 2019 - topping 100 million bpd in the second quarter of the year.

"More oil from OPEC plus is the base case", said Bjarne Schieldrop, analyst at Swedish bank SEB.

Early on Wednesday, President Trump tweeted: "Oil prices are too high, OPEC is at it again".

OPEC flows were already higher in May, led by Saudi Arabia, the IEA said, adding that the oil kingpin was still in compliance with the Vienna deal caps.

"To make up for the losses, we estimate that Middle East OPEC countries could increase production in fairly short order by about 1.1 mb/d and there could be more output from Russian Federation on top of the increase already built into our 2019 non-OPEC supply numbers", the IEA said.

His tweet comes in advance of a meeting of the Organization of the Petroleum Exporting Countries and Russian Federation planned for June 22 in Vienna to discuss easing supply caps that have been in place since the beginning of 2017.

Citing "people briefed on the discussions", Bloomberg on Wednesday said Saudi Arabia had floated several oil output hike plans to fellow cartel members.

Russian Federation and Saudi Arabia are set to open the football world cup, which kicks off in Russian Federation on Thursday.

Trump's complaints about OPEC come amid expectations of a more costly United States summer driving season.

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.

Since early in 2017, however, OPEC has coordinated with Russian Federation, another oil-exporting country that is not an OPEC member, to try to regulate global supplies. Key producers, including Saudi Arabia and Russian Federation, have reaffirmed the deal since then.

The talks come within less than two months of oil minister Dharmendra Pradhan proposing an alliance between Indian and Chinese staterun oil companies for a greater say in the market.

Charles Schumer, the leader of Senate Democrats, recently linked $3-plus gasoline to Trump's decision to revive sanctions on Iran.

USA crude stocks fell more than expected last week, while gasoline and distillate inventories dropped, the Energy Information Administration said on Wednesday.

The IEA report comes a day after OPEC warned of "considerable uncertainty as to world oil demand".

The U.S.is putting pressure on OPEC members to increase production as global benchmark prices flirt with $80 a barrel, raising pump prices in the months before the U.S. votes in midterm elections that could decide which party controls Congress.

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