Oil Prices Are Too High

President Donald Trump on Wednesday tweeted about oil prices, stating "Oil prices are too high, OPEC is at it again. Not good!", the president tweeted on Wednesday morning.

OPEC is the Organization of Petroleum Exporting Countries.

OPEC itself spotlighted United States output in its own monthly report on Tuesday, citing the growth of non-OPEC supply as one of several question marks hanging over the situation. While OPEC countries are still the dominant suppliers to Asia, nearly all big importers in the region have increasingly turned to USA crude after a four-decade ban on American exports was lifted in late 2015.

USA consumption of gasoline in the United States rose to an historic high of 9.88 million bpd last week, according to the EIA.

In May, the IEA said, higher flows from Saudi Arabia, Iraq and Algeria outweighed a fall in Nigerian supply and further losses in Venezuela, lifting OPEC crude production by 50,000 bpd to 31.69 million bpd. Russia, the leading country outside OPEC that's part of the current agreement, is also pushing for higher production.

The U.S. move has put pressure on European and Asian clients to stop importing Iranian oil or doing business with the country.

The oil-buying alliance may initially be made up of India and China, with South Korea and Japan - also major buyers - joining the club later, the Indian government official said on Wednesday. And while purchases have waned as shale production has grown, America is traditionally one of the biggest customers for Saudi oil.

His tweet comes in advance of a meeting of the Organization of the Petroleum Exporting Countries and Russian Federation planned for June 22 in Vienna to discuss easing supply caps that have been in place since the beginning of 2017.

Saudi Arabia last month signaled it was ready to boost output in the second half of the year to ease consumer anxiety about higher prices, a policy U-turn for the kingdom that only weeks earlier advocated for production restraint.

"I think in the near future there will be time to release supply", Saudi Energy Minister Khalid Al-Falih said at the St. Petersburg International Economic Forum in Russian Federation in late May.

The president has been vocal about his dissatisfaction with oil prices in the past. On April 20, Donald Trump took to Twitter to lambaste the cartel's push for higher prices.

This time the U.S. President used fewer words to reiterate his position that "OPEC is at it again". With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High!

Dangers included the possibility of higher prices amid trade disruptions prompted by the tariffs war unleashed by the USA against China, but which has also sucked in the EU, Canada and Mexico. "Maybe they are actually way too low".

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