Iran tells Trump to stop tweeting about oil prices
- Author: Zachary Reyes Jul 05, 2018,
Jul 05, 2018, 21:09
Futures in NY were 0.3 per cent higher following the U.S. Independence Day holiday, remaining near the highest since 2014.
Barely a week after OPEC's decision to ramp up oil supplies, Trump surprised the world on Saturday by announcing a new side agreement with the Saudis to compensate for supply shortages from two crisis-hit producers, Iran and Venezuela.
"With the oversupply fears still lingering in the background, rising production from OPEC+1 and USA shale, plus trade war fears, could negatively impact oil prices".
The letter, published by the Iranian Oil Ministry's SHANA news agency, did not directly name Saudi Arabia, Iran's Mideast rival, but the ultraconservative kingdom was clearly its target.
Turkey has also said it would keep up Iranian crude imports, while China, the largest consumer of Iranian crude oil, has criticised the U.S. for withdrawing from the deal. "But there is no conviction about the next direction for prices yet". Trump seems to want to have his cake and eat it; he wants to cut Iran's oil export to zero and keep the price of gasoline at a moderate level.
Information provider Genscape said USA crude inventories at the Cushing, Oklahoma, delivery hub had fallen in the week, traders said. The global benchmark traded at a US$6.11 premium to WTI for the same month. West Texas Intermediate was down 1.2% to $73.30 a barrel. US oil closed Friday at $74.15 a barrel.
Traders said the decline in fuel inventories was largely down to the outage at Syncrude Canada's 360,000 barrels per day (bpd) oil sands facility near Fort McMurray, Alberta, which is expected to last through July.
Asked if someone was manipulating oil markets, Trump said: "OPEC is and they better stop it because we're protecting those countries, many of those countries". This must be a two way street.
"As far as the geopolitical posturing via twitter or official statements, I think the market is taking them in stride for now", Tchilinguirian said.
Saudi Arabia and Russian Federation agreed today to maintain an oil coordination that allows a better glimpse of common efforts in this raw materials market.
Oil was mixed on Thursday, with US crude slipping and Brent futures little changed after data showed an unexpected build in USA crude oil stockpiles.
Despite Monday's drop in oil prices, many analysts see oil prices likely to resume their upward climb, given a range of geopolitical factors.
Trump said the agreement was reached after a phone call with the Saudi King about oil production but mentioned no specifics.