Trump Says OPEC To Blame For High Oil Prices

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Meanwhile, Nigeria's Bonny Light crude oil has maintain an global price of $73.44 per barrel, higher than the Organisation of the Petroleum Exporting Countries (OPEC) basket price of $73.35 per barrel.

There is a risk that traders are expecting a little bit too much heading into the meeting and could reshuffle their positions upon speculation that OPEC will not increase production to the amount now being priced in by the market between 500,000 to 1 million barrels a day. On the other side, less privileged OPEC members like Iran, Venezuela, Iraq, Angola, Libya and Nigeria whose production levels have been under pressure by different geopolitical and economic factors like USA sanctions and budget deficit need the prices to stay at current levels. In the past three weeks, however, the price has retreated back to $74.06 with a 4% fall since Friday triggered by Trump's trade war with China and concerns that Russian Federation and Saudia Arabia will look to increase output at a meeting in Vienna of Opec oil-producing nations this week. It would be a real increase in production from those countries with spare capacity including Saudi Arabia, Russia and the United Arab Emirates.

For tanker owners, there is much at stake on 22 June when OPEC oil ministers gather in Vienna for what is likely to be a particularly bad-tempered meeting.

Retail prices of petrol and diesel are ruling at Rs 75 a litre and Rs 68 a litre amid the global surge in crude prices.

Within OPEC, an increase in output will not affect all countries equally. The final decision needs to be unanimous for OPEC, however, and many analysts expect the meeting to be a disaster. Earlier in April, he had slammed the OPEC for keeping the prices "artificially very high".

World oil demand in 2018 is forecast to grow by 1.65 mb/d, broadly unchanged from previous month's assessment, to stand at 98.85 mb/d.

That was still down $1.23, or 1.9 percent, from their last settlement.

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This faction is reportedly also supported by Iraq.

While a compromise may be necessary to overcome vocal opposition from Tehran, Baghdad and Caracas, it could mean the resulting supply boost is smaller than oil traders - or indeed the U.S. President Donald Trump - had been anticipating.

Tankers waiting to load more than 24 million barrels of crude, nearly as much as state producer PDVSA shipped in April, are sitting off the Opec member's main oil port. Significant drops in U.S. and global oil inventories show consumer demand is at record highs, spurred by the lower oil prices and now a stronger global economy, said Roberts and Michael Cohen, analyst at Barclays.

Members of the Organization of Petroleum Exporting Countries are discussing an agreement that delivers 300,000 to 600,000 barrels a day of additional oil supply to global markets over the next few months, according to people briefed on the talks.

Matt Smith, director of commodity research for ClipperData, says the Saudi oil minister has been signaling that a boost in production is coming.

Non-OPEC members including Russia, Oman and Mexico also agreed to cut 558,000 bpd off their production to stabilise the market. After yearlong rise in oil and gasoline price, there's a call to control Oil price from rising too far and too fast.