Oil prices climb on tightening US market

Oil prices climb on tightening US market

Of course, the policies coming from Washington always had an impact on where oil prices were headed, but it's a brand-new thing to have the White House's twitter feed as a regular source of risk for positions in oil and oil stocks.

The leader of Saudi Arabia, OPEC's biggest member, has assured 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.

Net U.S. crude imports rose last week by 1.4 million barrels per day.

Brent crude futures LCOc1 were at 77.70 dollars per barrel at 6.53 GMT, down 54 cents, or 0.7 percent, from their last close.

Bijan Zanganeh condemned the USA president for trying to politicize the decisions of the Organization of the Petroleum Exporting Countries (OPEC). "Looming U.S. sanctions on Iran, however, are causing serious concerns amongst market players".

Iran's oil minister has hit back at Donald Trump today over his demand for more production, branding the president's orders as an insult to the Organisation of the Petroleum Exporting Countries (Opec).

According to analysts, escalating tensions between China and the USA, with the two largest economies in the world implementing tariffs $34 billion on their respective imports and the threat of more action, could weigh on crude prices and soften demand expectations.

And Trump's lack of understanding of the dynamics of OPEC and the global oil markets come through particularly clearly with every tweet he sends and FOX interview he gives. This must be a two way street.

Saudi Arabia's objective, revealed at the OPEC meeting in June, has been to stabilise production and prices around current levels. "Because the oil market is already in tight supply due to the numerous outages, this would drive global prices (Brent) further up", Commerzbank said in a note.

Following his comments, oil prices fell on July 5.

"We will use a bartering system to exchange oil for goods".

USA tariffs on $34 billion in Chinese imports took effect as a deadline passed on Friday and Beijing has vowed to respond immediately in kind, setting the two world's biggest economies on a path toward a full-blown trade conflict.

The oil minister also said that Iran, which is Opec's third-largest producer, has not changed its oil production and exports amid growing United States pressure.

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