Trump Declares Oil Prices 'Too High,' Blames OPEC

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Prices were pulled down by another rise in U.S. oil production, which hit a weekly record of 10.9 million barrels per day (bpd) last week, according to the Energy Information Administration (EIA) on Wednesday. The ministers are gathering on June 20 as they debate an exit plan for the 2016 production cut deal, one of the key factors for pushing up oil prices.

Oil prices have risen by around 60 per cent over the a year ago after the Organization of the Petroleum Exporting Countries and some non-OPEC producers, including Russian Federation, started withholding output in 2017 to reduce excess supply. The Joint Ministerial Monitoring Committee (JMMC) representing the 24 Opec and non-Opec producing countries participating in the voluntary production adjustments will next meet in Vienna on June 21.

Iran's OPEC governor, Hossein Kazempour Ardebili, fired back at Trump in a statement to Reuters.

According to secondary sources, total OPEC crude oil production averaged 31.87 million bpd in May, an increase of 35,000 bpd from the previous month.

"This is business, Mr. President - we thought you knew it".

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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The US move has pressured European and Asian clients to stop importing Iranian oil or doing business with the country. The House Judiciary Committee approved a bill Wednesday to subject OPEC to US antitrust law by removing state immunity shields.

OPEC and its Russia-led non-OPEC allies are up for a very heated meeting next week, but it looks like the leaders of the two groups-Saudi Arabia and Russia-believe that they will persuade dissenters to agree to some sort of a production boost. "Not good!" Trump wrote in a post on Twitter on Wednesday after last raising the issue in April. This would make it harder to respond to a supply shock, such as in Venezuela, where output has declined to a 33-year-low due to an economic crisis.

Fund manager Pierre Andurand at Andurand Capital is bullish.

International Energy Agency sees the two fuelling half the global demand growth in the next five years, with India driving incremental demand growth through the next two decades.

Jason Bordoff, a Columbia University professor and former energy adviser to President Barack Obama, said politicians always fret when gasoline prices rise before a big election. Crude inventories fell by 4.1 million barrels in the week to June 8, exceeding analysts' expectations for a decrease of 2.7 million barrels.

Separately, a bipartisan group of lawmakers in the US House of Representatives was pushing legislation that would subject OPEC to US antitrust law and fight what the group called artificial production controls. He previously covered the Trump White House.