Oil-importing countries need a cartel to challenge OPEC

Oil-importing countries need a cartel to challenge OPEC

Oil-importing countries need a cartel to challenge OPEC

The lack of response in United States crude oil to a demand earlier this week by President Donald Trump that the Organization of the Petroleum Exporting Countries cut its prices has added to the evidence that a further move higher is possible once the current period of consolidation is over. The president said the US defends many OPEC member states, insinuating that as a returned favor, these nations should cave to Washington's demands.

OPEC members agreed June 23 to increase crude oil output by pumping 1 million barrels more daily, but it is still unclear how much of the oil produced would ease off prices in a period-the northern hemisphere's summer-generally associated with high oil demand. The bank said that USA efforts to block Iran from exporting oil would make it hard for OPEC to meet supply demands, forcing prices to rise.

U.S. West Texas Intermediate and worldwide benchmark Brent crude oil futures are trading lower early Thursday and for the week after President Trump turned up the heat on OPEC to reduce prices for crude.

Saudi Arabia's total supplies to the market in June were even higher than well-head production, the sources said, suggesting the Kingdom sold crude from storage.

Ardebili told Reuters that Trump "should have expected" when blocking Iran's access to the global markets that it would end up as "hostage (to) Saudi Arabia and Russian Federation", who he said had little vested interest in bringing down prices.

Iran's deputy commander of the Sarollah Revolutionary Guards said on Wednesday that any attempt to thwart its oil exports will result in the closure of Strait of Hormuz, the narrow waterway at the mouth of the Persian Gulf, where the world's biggest concentration of tankers carry about 30 percent of all seaborne-traded crude oil and other liquids during the year.

US West Texas Intermediate crude futures were down 16 cents, or 0.2 percent, at.98 per barrel.

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US crude inventories fell by 4.5 million barrels in the week to June 29 to 416.9 million barrels, according to the American Petroleum Institute (API) on Tuesday.

USA crude futures were up 32 cents at 74.46 dollars. The Saudis have increased oil production, following an OPEC meeting last month, but it hasn't been enough to overcome the effects of reduced supplies from other producers.

The reduction comes a day after Trump took aim at OPEC for rising oil prices, urging the cartel to "REDUCE PRICING NOW!"

Crude stocks at the Cushing, Oklahoma, delivery hub for futures fell heavily by 2.1 million barrels, EIA said, dropping overall inventories at the key storage hub to their lowest level since 2014.

Oil prices have been rocked by recent comments from President Donald Trump. Last month, in an interview with Reuters, he said that "you (Trump) can not place sanctions on two OPEC founder members and still blame OPEC for oil price volatility". If anything, they are driving prices higher as the United States defends many of their members for very little $'s.

Brent crude futures lost 85 cents to settle at $77.39 a barrel. S. oil has been 10 to 11 dollars.

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