Trump says OPEC is 'doing little' to lower gas prices

Trump says OPEC is 'doing little' to lower gas prices

Trump says OPEC is 'doing little' to lower gas prices

The Saudi Arabian Oil Co., better known as Saudi Aramco, lowered August prices for light oil to Asia by 20 cents to $1.90 a barrel above the Middle East benchmark, according to Bloomberg.

Recent price rises have also been spurred by a USA announcement that it plans to reintroduce sanctions against Iran from November, targeting oil exports.

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. As the 2018 mid-term elections loom, Trump's threat to the Saudi-led OPEC oil cartel is a sign to voters that he's doing something about rising prices at the pump (even if it's just sending tweets).

"This must be a two way street", he wrote, adding in block capitals, "REDUCE PRICING NOW!"

Historically that has been the case, and with Saudi production already at record levels, Trump's expectation that the Saudis will make up for Iran's shortfalls are not realistic.

The Saudis and Russians were also the allies that agreed two weeks ago to boost production and reverse some of the cuts to "stabilize" the oil market and oil prices, after plunging Venezuelan production and pending USA sanctions on Iranian spooked the oil market and sent oil prices to three-and-a-half-year highs.

Though oil prices are still well below their recent peaks, the steady creep back up will pinch the pockets of consumers who were getting used to cheaper gas after years of high prices and talk of "peak oil"-the topping out of the world's finite supply as it begins to run out". The global community had expected sanctions waivers for some countries, a tactic used in the Obama era to avoid supply shocks.

"If Libya's oil doesn't return fast to the market it will be an important test to OPEC's spare capacity, especially given that output from Venezuela and Iran is expected to fall significantly in the next couple of months", he added.

Traders said supply disruptions could be short-lived as OPEC and allied producers ramp up output. "Please stop this method". "We expect you to be more polite". In early trade, the contract rose to $75.27, a 3-1/2-year high. West Texas Intermediate was down 1.2% to $73.30 a barrel. In late morning trading, the price of the worldwide benchmark Brent grade of crude oil was little changed at $77.85 a barrel.

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