Wednesday, US President Donald Trump and Iran exchanged sharp words over Crude Oil prices.
President Trump blames OPEC for high Crude Oil prices and Tehran accusing him of stoking volatility after he withdrew last month from a global nuclear arms deal with Iran.
Crude Oil prices have risen around 60% over the last year after the Organization of the Petroleum Exporting Countries and some non-OPEC producers, including Russia, started reducing supplies in Y 2017.
OPEC meets on 22-23 June Vienna, Austria, and producers are seen as likely to raise production, perhaps before the limits are due to Sunset at year-end.
The Crude Oil supply deal is set to continue through the end of Y 2018, but plans for its continuation were unclear.
The scene changed after President Trump announced in May that Washington was pulling out of the Y 2015 deal that restricted Iran’s nuclear program in exchange for the removal of sanctions.
The US move has pressured European and Asian clients to stop importing Iranian Crude Oil or doing business with the country.
Saudi Arabia, Iran’s rival and OPEC’s largest producer, and Russia, the world’s largest producer and a party to the deal, have increased supply.
Saudi Arabia supported President Trump’s decision to exit the Iran nuclear agreement.
Saudi production rose to 10.03-M BPD in May, in line with deal quotas, according to OPEC data.
Russia’s production was 11.1-M BPD in the beginning of June, exceeding its quota according to the available data
The price of ICE Brent Crude peaked in May at 80.50 bbll, then pulled back, trading Wednesday near 77 bbl in partly in anticipation that the deal will likely end.
NYMEX WTI Crude traded Wednesday near 67 bbl.
“Oil prices are too high, OPEC is at it again. Not good!” Trump wrote in his post on Twitter after last raising the issue in April.
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