Trump says OPEC is actually ‘ripping off the rest of the planet’

The Trump administration has pushed prices higher This specific summer by telling oil buyers they must cut their purchases of Iranian crude to zero by Nov. 4 or else face U.S. sanctions. The aggressive deadline has left the market to wonder whether top exporter Saudi Arabia as well as different producers can fill the gap left by the anticipated loss of about 1 million barrels a day from the coming months.

“OPEC has actually been a pretty Great first responder. They have put a significant number of barrels on the market since President Trump started off tweeting as well as since the June meeting,” said Helima Croft, global head of commodity strategy at RBC Capital Markets.

“The real challenge though for OPEC going forward as well as for President Trump is actually there’s not a lot of gas from the tank,” she told CNBC’s “Power Lunch” on Tuesday. “Saudi Arabia is actually about 320,000 barrels away through their 2016 pre-cut high, as well as there’s a question mark about how much more they can actually do beyond in which from the near term.”

Brent crude prices rose to a nearly four-year high above above $82 a barrel on Tuesday after OPEC as well as its allies said they would certainly stick to the plan they agreed to in June.

“We want them to stop raising prices,” Trump said Tuesday. “We want them to start lowering prices.”

“We are not going to put up with the item, these horrible prices, much longer.”

Saudi Energy Minister Khalid al-Falih told CNBC on Sunday in which Trump’s claim on Twitter last week in which OPEC is actually pushing oil prices higher as well as higher is actually “not true.” He said the cartel is actually focused on “more important” aspects of the oil market, like assuring the planet is actually adequately supplied with crude.

Falih said he is actually concerned about the global economy due to the Trump administration’s trade disputes with several countries as well as currency pressures in emerging markets. Those factors could dampen demand for oil, producing the item perilous to enhance supply.

“the item’s no longer about supply only. I think demand is actually emerging as a concern as we look at 2019,” he said.

Royal Dutch Shell CEO Ben van Beurden told CNBC This specific week in which $80 oil is actually not “unreasonable” as well as may be necessary to fuel spending on oil as well as gas infrastructure after a period of underinvestment.

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