Published: Sun, September 23, 2018
Economy | By

Trump slams OPEC urging oil cartel to "get prices down now"

Trump slams OPEC urging oil cartel to

He was referring to the weekly survey from the oil industry group the American Petroleum Institute (API) on Tuesday that indicated USA stocks had risen by 1.2 million barrels last week.

Futures in London were little changed near $79 a barrel after a 1.3 percent gain Tuesday.

For this year's April-September driving season, the EIA expects U.S. regular gasoline retail prices to average $2.87 a gallon, up 19% from a year ago, mostly due to expectations of higher crude oil prices.

While Iran's exports have moved in Trump's favor, the president faces the predicament of wanting oil prices to come down before USA midterm elections on November 6. After peaking at a record $147.50 a barrel in July 2008, Brent crude fell as low $36.20 by year-end. EIA also reported a larger than expected draw in the inventories of gasoline, and smaller than expected build in the inventories of distillates. US refineries produced about 10.3 million barrels of gasoline a day last week, down by 100,000 barrels compared with the prior week. Over the past four weeks, motor gasoline supplied averaged 9.70 million barrels per day, up 2.0 percent from the same period a year ago.

Concerns that the cartel and its allies would fall short sent global benchmark Brent crude $1.00 higher to $80.12 per barrel early in the session. The low point for Wednesday's trading was $69.65. The 52-week range on October futures is $50.06 to $71.63.

Oil prices fell after Trump's tweet, with the price of West Texas Intermediate crude oil - the USA benchmark - falling to a low of $70.86 a barrel, a drop of about 0.58%.

Russian Federation has increased its productivity by more than 200,000 bpd (barrels per day). Distillate fuel inventories increased 0.8 million barrels last week, 0.9 percent above the levels of the same week previous year.

Distillate fuel oil supplied over the last four-week period averaged 4.04 million barrels per day, down 0.8 percent from the same period past year. Data from the InterContinental Exchange shows that open interest in buy, or call, options at Dollars 80 and USD 85 a barrel that expire on September 25 has jumped almost 45 percent in two days. Exports of refined products rose by 363,000 barrels a day last week to 5.22 million barrels a day. Driven by a combination of hubris and grievance - the kingdom thought it could easily vanquish high-cost shale and was sick of shouldering the burden of stabilizing prices alone - energy minister Ali Al-Naimi rejected requests from fellow members and opened the taps in a war for market share.

At the companies reviewed, liquids production increased by 2.3 percent in Q2 2018 from Q2 2017, while natural gas production rose by 1.8 percent over the same period.

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