Published: Wed, June 13, 2018
Finance | By Loren Pratt

Trump Declares Oil Prices 'Too High,' Blames OPEC

Come for the football, stay for the oil diplomacy.

Saudi Arabian Crown Prince Mohammed bin Salman and President Vladimir Putin are meeting in Moscow tomorrow to discuss oil policy on the sidelines of the opening match of the FIFA World Cup.

Donald Trump and Iran exchanged sharp words over oil prices on Wednesday, with Tehran accusing the US president of contributing to volatile prices after he withdraw from a global nuclear arms deal last month.

"Prices will be above $150 in less than two years", he tweeted on Wednesday.

In late May, that decline reversed and the price oil declined as Russian Federation and Saudi Arabia indicated a willingness to accept lower prices.

OPEC is the Organization of Petroleum Exporting Countries, a group of 14 oil-producing nations that had agreed to tighten supply to shore up crude prices.

Oil prices are set, for the most part, by Saudi Arabia and, to a lesser extent, it's OPEC partners. But he warned that less than ten days for the meeting the size and timing of any increases was still up in the air.

"The important to us, but. we have not received any official communication, or even unofficial communication, from the administration", he told CNN.

Iran's OPEC governor, Hossein Kazempour Ardebili, fired back quickly at Trump's words. Such attempts have failed in the past and "they will also fail" this time.

Russia, alongside Saudi Arabia, has the highest spare capacity to boost production.

Since then, prices have rallied close to $80 a barrel. In May, the group's total reduction added up to nearly 2.2 million barrels a day, according to the International Energy Agency.

IEA's scenario showed that by the end of next year output from these two countries could be 1.5 million bpd lower than now, amid U.S. sanctions against Iran and the production collapse in Venezuela.

Earlier in the session, Brent and USA crude had retreated on concerns about rising production in the United States and expectations that OPEC and other producers could relax voluntary output cuts.

U.S. President Donald Trump and Iran exchanged sharp words over oil prices, with Trump blaming OPEC for high oil prices and Tehran accusing him of stoking volatility after he withdrew last month from a global nuclear arms deal with Iran. "Not good!" the president said.

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