Saudis Lower Most Oil Pricing as Iran Taunts Trump on Tweets

Eileen GuzmanJul 06, 2018

Iran's governor for the Organization of Petroleum Exporting Countries said President Donald Trump's tweets complaining about oil prices are only serving to drive prices higher, Bloomberg reported.

Furthermore, the bulls also derived support from an Iranian threat to block shipments through the Strait of Hormuz while comments from the Iranian government, asking Trump to stop tweeting on oil prices, also helped. 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". The leading OPEC member announced plans to pump a record-high 11 million barrels of oil per day in July, according to press reports.

Oil futures were climbing on Thursday, with US crude hovering at its highest in about 3-1/2 years as supply disruptions continue to support the market.

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Crude pared gains after hitting a three-year high in NY as prospects for accelerating supply damped enthusiasm for the rally and traders curbed bullish bets before a USA holiday.

"The responsibility of paying unnecessary prices for oil by all consumers of the whole world, especially in USA gas stations, is exclusively upon your (Trump's) shoulders and the price of over $100 per barrel is yet to come", Kazempour said.

"We have informed our oil customers that we will only buy their commodities if they buy our crude", Gharekhani said.

Oil prices fell earlier today as Trump demanded that the OPEC cartel reduce crude prices. The global community had expected sanctions waivers for some countries, a tactic used in the Obama era to avoid supply shocks.

OPEC and Russian Federation announced in June they were willing to raise output to address concerns of emerging supply shortages due to unplanned disruptions from Venezuela to Libya, and likely also to replace a potential fall in Iranian supplies due to United States sanctions.

Iran's representative to OPEC, Hossein Kazempour Ardebili, replied on Thursday by blaming Trump. "Please stop this method".

Meanwhile, US crude oil production has soared by 30 percent in the last two years, to 10.9 million bpd.

"With those continued drawdowns at Cushing, we were approaching a situation where you could soon start to consider us nearing a shortage", Kilduff said. Brent, the worldwide benchmark, shed 0.5% to $77.77 a barrel.

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