Trump Blames OPEC For 'Too High' Oil Prices, Again

Trump Blames OPEC For 'Too High' Oil Prices, Again

"We have looked at a scenario, not a forecast, showing that by the end of next year output from these two countries (Venezuela and Iran) could be 1.5 mb/d (million barrels per day) lower than it is today", it said in a report.

Oil prices reversed losses, US crude settling 0.4% higher at $66.64 a barrel, and Brent crude rising 1.1% to $76.74, amid reports that Russian Federation wants a full-rollback of production cuts it had agreed to make with OPEC in 2016. Oil output for Venezuela has been crimped by the nation's economic crisis while US sanctions on Iran could further reduce that country's output.

IEA's scenario showed that by the end of next year output from these two countries could be 1.5 million bpd lower than now, amid United States sanctions against Iran and the production collapse in Venezuela. "Not good!" Trump wrote in a post on Twitter on Wednesday after last raising the issue in April.

"You can not place sanctions on two OPEC founder members and still blame OPEC for oil price volatility", he said in a statement to Reuters, referring to itself and Venezuela.

The IEA meanwhile warned that whatever the outcome of the meeting, "the market will be finely balanced next year, and vulnerable to prices rising higher in the event of further disruption".

India and China are discussing ways to boost imports of USA crude to Asia, a move aimed at reducing their dependence on cargoes from members of the Organization of Petroleum Exporting Countries, according to an Indian government official. Using drilling advances such as fracking, operators in Texas and North Dakota have pushed USA production higher. He also chronicled Maryland government for more than a decade.

Oil prices have eased slightly in recent weeks. Russia's production was 11.1 million barrels a day in June, exceeding its quota, according to sources familiar with the matter. Domestically, more crude was burned in Saudi power plants during the month, partly due to higher air-conditioning use. "Not good!", the president tweeted on Wednesday morning.

Trump's tweet - similar to one he wrote in April, blaming OPEC for "artificially Very High" oil prices - came a week before a much-anticipated OPEC meeting in Vienna and may have been created to influence the discussion. The House Judiciary Committee approved a bill Wednesday to subject OPEC to USA antitrust law by removing state immunity shields. The measure now goes to the full House.

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. Its main concerns are higher oil prices and trade disruptions.

Oil pumpjacks are seen in Lagunillas, Venezuela May 24, 2018.

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

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