Oil prices chart new territory on supply-side concerns

Oil prices chart new territory on supply-side concerns

Oil prices chart new territory on supply-side concerns

Oil briefly touched $75 a barrell on Tuesday before retreating following the news of the Saudi government decision.

This most recent Twitter post also made it look like USA policy is reliant on Saudi Arabia's spare capacity to fill global supply gaps, the analysts wrote.

Iran's OPEC governor, Hossein Kazempour Ardebili, accused the United States and Saudi Arabia of trying to push up oil prices and said both countries are acting against the foundation of OPEC.

The Iranian warning, in a letter to the United Arab Emirates' energy minister, comes as Tehran faces a US push to get its allies to stop buying its oil as part of Trump's decision to pull America from the nuclear deal with world powers.

The US administration is also working to minimize disruptions to the global oil market due to the counter-Iran sanctions, but it is confident there is enough spare oil production capacity in the market, Hook added.

This increase was needed to cope with the "turmoil and dysfunction in Iran and Venezuela", Trump said, referring to United States plans to impose new sanctions on Iran and low oil production in the South American country.

Iran's first vice president says the country is considering oil exports by the private sector in a bid to thwart forthcoming U.S. sanctions, which mostly aim to curtail the Islamic Republic's revenues by blocking its crude oil exports.

Some 50 global companies had announced their intention to leave the Iranian market, particularly in energy and financial sectors, as the United States moved to reimpose the sanctions against Iran, Hook said.

"We are prepared to work with countries that are reducing their imports on a case-by-case basis", he added.

"Your tweets have increased the prices by at least $10".

Trump's scramble to slow down the oil rally comes four months ahead of U.S. midterms, where analysts say rising gasoline prices could hurt Republicans.

On Saturday Trump tweeted that he had asked King Salman of Saudi Arabia to increase oil production by as much as 2m barrels, which he said that Salman had agreed to.

Brent for September settlement advanced $1.05 to $78.35 a barrel on the London-based ICE Futures Europe exchange.

The White House says that the two leaders "will discuss relations between the United States and Russian Federation and a range of national security issues", without giving more details.

After reducing production by more than 1.8 million barrels daily since January past year to drain a global glut, the producers decided in Vienna on June 23 to reverse course.

Saudi Arabia has expressed readiness to use spare production capacity to maintain market balance.

According to Jahangiri, any country trying to take away the oil market share from Iran is committing "great treachery" and "will one day pay for it". US oil prices jumped 8 percent last week.

U.S. President Donald Trump again accused the Organization of the Petroleum Exporting Countries of driving gasoline prices higher on Wednesday and urged the oil producer group to do more.

"I want to wait until after the election", he said.

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