Published: Wed, June 13, 2018
Markets | By Otis Pena

Trump renews attack on OPEC ahead of production meeting

Trump renews attack on OPEC ahead of production meeting

US President Donald Trump in May announced he would pull out of a landmark 2015 nuclear agreement with Iran that had eased sanctions on the oil giant.

Oil prices fell on Wednesday, hit by rising supplies in the United States and expectations that producer group OPEC could relax voluntary output cuts. "Not good!" Trump wrote in a post on Twitter on Wednesday after last raising the issue in April.

The Organization of the Petroleum Exporting Countries and some non-OPEC producers, including Russian Federation, started withholding output in 2017 to reduce a global supply overhang and prices have risen by around 60 percent over the past year. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High!

President TrumpDonald John TrumpWhat you need to know about Tuesday's elections Danny Tarkanian wins Nevada GOP congressional primary Laxalt, Sisolak to face off in Nevada governor's race MORE focused on high oil prices in a tweet on Wednesday, again laying blame on OPEC. "No good and will not be accepted!" They plan to discuss oil, amongst other things.

In the letter, the senators said a run-up in oil prices is "effectively a tax on every American family's discretionary budget" since the price of oil directly affects the price of gasoline.

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Treasury can impose a penalty of up to US$1 million and 20 years in prison against any company or person who violates the sanctions.


USA ally Saudi Arabia remains OPEC's most powerful member - with enough production capacity to manipulate global supplies.

Even if the supply gap, triggered by the return of United States sanctions on Iran and a major political crisis in Venezuela, is plugged, the oil market will likely remain vulnerable to disruption next year, the IEA warned.

Since early in 2017, however, OPEC has coordinated with Russian Federation, another oil-exporting country that is not an OPEC member, to try to regulate global supplies.

Trump's latest tweet comes ahead of a gathering of OPEC members on June 22.

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