Trump declares oil prices 'too high', blames Opec

Opec and its allies have been curbing supply since January 2017 to boost oil prices and cut bloated global inventories

Opec and its allies have been curbing supply since January 2017 to boost oil prices and cut bloated global inventories

The deal, which is due to run out at the end of 2018, has succeeded in boosting oil prices above $70 a barrel from below $30 a barrel in early 2016.

- Donald J. Trump (@realDonaldTrump) April 20, 2018Bloomberg and Reuters reported last week that Trump requested that Organization of Petroleum Exporting Countries members, such as Saudi Arabia, increase their oil production.

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 previous year.

Iran's OPEC governor, Hossein Kazempour Ardebili, fired back quickly at Trump's words.

"The demand metrics here are incredible for crude oil and gasoline", said John Kilduff, a partner at Again Capital in NY.

Oil prices edged higher on Wednesday, turning positive after US government data showed a bigger weekly draw than expected in domestic crude inventories along with unexpected declines in gasoline and distillate stocks.

On the New York Mercantile Exchange, West Texas Intermediate futures were down 0.18% at $66.24 a barrel. The calculus changed, however, after Trump announced in May that the United States was pulling out of the 2015 deal that restricted Iran's nuclear program in exchange for the removal of sanctions.

OPEC will meet on June 22 in Vienna, Austria, to discuss future production policy.

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

Although Saudi Arabia has benefited from oil's rally over the last two years, the government relies on a strong security relationship with the US, giving Washington some influence in the debate over OPEC policy.

However, it is unclear whether other nations will commit to raising production.

"To make up for the losses, we estimate that Middle East OPEC countries could increase production in fairly short order by about 1.1 mb/d and there could be more output from Russian Federation on top of the increase already built into our 2019 non-OPEC supply numbers", it added.

Trump sent out his tweet hours after returning to Washington from a summit with North Korean leader Kim Jong Un in Singapore and it was not immediately clear what prompted his comment.

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