Saudis to pump 2mn more barrels of oil

Saudis to pump 2mn more barrels of oil

Trump again accused the Organization of the Petroleum Exporting Countries of driving fuel prices higher on Wednesday, and urged US allies such as Saudi Arabia to pump more if they wanted Washington to continue protecting them against their top foe Iran. US crude futures were up 32 cents at $74.46, within sight of Tuesday's 3-1/2-year high above $75.

The Organization of the Petroleum Exporting Countries pumped 32.32 million bpd in June, a Reuters survey showed, up 320,000 bpd from May. This must be a two way street.

Despite that key member Saudi Arabia is affirming that the group and its allies will boost output, Goldman Sachs Group Inc. warned that oil is likely to lead a new rally as the market faces significant supply risks from Venezuela to Iran.

Since April, President Trump had criticized OPEC twice for manipulating oil prices, calling the cartel out for oil prices that are "too high". Plus, a report today from data-provider Genscape Inc. was said to show Texas Gulf Coast crude stockpiles rose by about 431,000 barrels last week.

Though oil prices are still well below their recent peaks, the steady creep back up will pinch the pockets of consumers who were getting used to cheaper gas after years of high prices and talk of "peak oil"-the topping out of the world's finite supply as it begins to run out".

Iranian President Hassan Rouhani downplayed the seriousness of the ban, saying he is confident Iran will survive this round of USA sanctions as it has other sanctions in the past.

America wants to cut Iran's oil exports to zero by November.

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But Tehran has threatened to take drastic action on the oil supply in retaliation against Trump's attempt to curb its exports.

"Given the extension of the Opec agreement to end of 2018, we expect oil sector growth to be limited this year, especially given the UAE's increasing compliance with the production cuts, which averaged 124 per cent in the first three months of 2018", ICAEW said.

The Strait of Hormuz is of major strategic importance.

"Your tweets have driven the prices up by at least US$10 per barrel", Iran's OPEC governor Hossein Kazempour Ardebili said in a message to Trump, carried by Iranian Oil Ministry's Shana news service.

The leader of Saudi Arabia, OPEC's biggest member, has assured Mr Trump that the kingdom can raise oil production if needed, and that the country has 2 million barrels per day of spare capacity that could be deployed to help cool oil prices to compensate for falling output in Venezuela and Iran.

The early gains came after Iran appeared to threaten to disrupt oil shipments from the Middle East Gulf if Washington pressed ahead with sanctions.

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