Trump renews attack on OPEC ahead of group's production meeting

Irving Hamilton
June 13, 2018

The world's top crude producers are key partners in the OPEC+ deal, which is created to prop up oil prices by cutting global output.

Benchmark Brent crude oil was down 35 cents at $75.53 a barrel by 0730 GMT.

Fox News contributor John Layfield on the impact of rising oil prices on the USA economy.

"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.

US President Donald Trump on Wednesday accused the Organization of Petroleum Exporting Countries of driving up oil prices, in a fresh swipe at the cartel's agreement to cap production.

OPEC and various non-OPEC oil producers are set to convene in Vienna later in the month to discuss future production.

But the outlook for the oil market in the second half of this year is uncertain, analysts say, and OPEC argues there are downside risks to global demand.

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An oil production shortfall in Iran and Venezuela may force OPEC and Russian Federation to decide later this month to open their taps, the International Energy Agency said Wednesday. In late May, that decline reversed and the price oil declined as Russian Federation and Saudi Arabia indicated a willingness to accept lower prices.

Dutch bank ING, however, said some OPEC members would "struggle to push production back to October 2016 levels".

In the United States, the American Petroleum Institute said on Tuesday that crude oil inventories rose by 830,000 barrels in the week to June 8, to 433.7 million.

OPEC and Russian Federation decided together in 2016 to cut their supply in order to push prices up following a crash in prices induced by a global crude production glut.

"With rising production from US shale adding to oil's woes and reviving oversupply concerns, further downside could be a possibility in the short to medium term", Otunuga said.

"The U.S.is important to us, but. we have not received any official communication, or even unofficial communication, from the administration", he told CNN.

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