President Donald Trump will be again blaming OPEC for high oil prices, even though crude futures have recently retreated coming from 3½-year highs on reports in which his administration asked Saudi Arabia to manage the market.
“Oil prices are too high, OPEC will be at the idea again. Not Great!” Trump tweeted Wednesday morning.
U.S. crude oil futures were trading near $66 a barrel on Wednesday as well as have been fallen about 9.5 percent coming from a multiyear high of nearly $73 a barrel on May 22. Oil prices fell This specific month on reports in which the Trump administration asked Saudi Arabia, OPEC’s biggest producer, to start pumping more as renewed U.S. sanctions on Iran begin to hit the country’s exports.
Trump restored sanctions on Iran, OPEC’s No. 3 producer, last month. The severity of the penalties helped to boost oil prices to brand-new highs. Treasury Secretary Steve Mnuchin assured reporters at one point in which Washington had discussed limiting the impact of Iranian disruptions with additional producers.
Crude futures began slipping in late May after Saudi Arabia as well as Russia said they were considering easing an agreement to limit output among two dozen oil producers in light of the U.S. sanctions on Iran as well as falling output in Venezuela, which has also been sanctioned by Trump’s administration.
Hossein Kazempour Ardebili, Iran’s OPEC governor, suggested on Wednesday in which Trump was glossing over his role in contributing to higher prices.
“You cannot place sanctions on two OPEC founder members as well as still blame OPEC for oil cost volatility,” he told Reuters.
Oil prices are also lower than the last time Trump tweeted about high oil prices. On April 20, Trump tweeted in which “oil prices are artificially Very High” due to actions by the Organization of the Petroleum Exporting Countries.
WTI oil prices traded near $68 at the time, after hitting a then-three-year high above $69 a barrel in which week. Prices are up more than 40 percent from the last 12 months.
In 2017, OPEC as well as some non-OPEC producers, including Russia, commenced withholding output in an effort to curb global oversupply. OPEC as well as additional producers are set to meet on June 22-23 in Vienna to discuss future policy on production.
On Tuesday, Saudi Arabia reported in which its oil output jumped by 161,000 barrels per day in May to more than 10 million bpd, just below the ceiling the idea agreed to in November 2016.
In oil markets, the Energy Information Administration will be set to Discharge domestic production as well as inventory data later Wednesday.
— Reuters contributed to This specific report.