Oil prices surge 2% to four-year high after OPEC rebuffs Trump

Oil prices surge 2% to four-year high after OPEC rebuffs Trump

Oil prices surge 2% to four-year high after OPEC rebuffs Trump

This time, the deepening trade war between the USA and China threatens economic growth in Asia and turmoil in emerging countries could amplify the impact of higher prices on global demand growth.

"Iran will lose sizeable export volumes, and given OPEC+ reluctance to raise output, the market is ill-equipped to fill the supply gap", Harry Tchilinguirian, global head of commodity markets strategy at French bank BNP Paribas, told the Reuters Global Oil Forum.

However, during the meeting OPEC leader Saudi Arabia and its biggest oil producer ally outside the group, Russia, ruled out any immediate extra increase in output, effectively rebuffing a call by Trump for action to cool off the current rally.

Oil is maintaining strong bullish momentum, with daily MA's in full bullish configuration, supporting the advance.

The pending loss of Iranian supply has been a major factor in the recent surge in crude prices.

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Indeed, Khalid al Falih, energy minister for Saudi Arabia, stated, "I think member countries over the last three months since June have responded in a very good way and have opened the taps and provided a lot of supply to offset decreases in Iran, decreases in Venezuela, decreases in Mexico, and markets are quite balanced today".

In a speech, Mohammad Barkindo, OPEC secretary general, said the organisation would "work hard to ensure a sustainable stability in the global oil market, enabling steady and lasting economic growth across consuming and producing countries". "As we produce more energy here at home, the USA needs markets for its products in order for our economy to continue to grow".

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The standoff has prompted Moon to play the role of mediator between Pyongyang and Washington . The two Koreas technically remain at war as the Korean War ended only with an armistice.

Meanwhile, U.S. crude inventories are forecast to have fallen for a sixth week, according to a Bloomberg survey of analysts before Energy Information Administration data due Wednesday.

Saudi Arabia says it has almost 2 million barrels per day of spare production capacity to be exploited.

In addition, we have to remember we're dealing with a massive decline in Venezuelan oil.

This came during the 10th meeting of the Joint Ministerial Committee to follow up the agreement to reduce the oil production of members of OPEC and its partners from outside the organization, which concluded on Sunday in Algeria.

Oil prices jumped more than 2 percent to a four-year high on Monday after Saudi Arabia and Russian Federation ruled out any immediate increase in production despite calls by U.S. President Donald Trump for action to raise global supply.

Iran's OPEC representative Hossein Kazempour Ardebili on Sunday said his country was continuing to meet its OPEC quota share.

Sunday's meeting in Algiers brought together OPEC oil ministers and non-OPEC signatories to the 2016 agreement, as they seek to extend their cooperation.

Oman's oil minister Mohammed bin Hamad Al-Rumhy told reporters on Saturday that OPEC and non-OPEC producers overachieved on pledged output cuts by 600,000 bpd in August, putting the reduction at around 2.4 million bpd.

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