[ad_1]
If the world's largest oil exporter says that it will increase production, prices usually fall. But as Saudi Arabia adds barrels before its customers are burned, prices have jumped. And Donald Trump is not happy.
The US president tweeted Saturday that the Saudi king had agreed to increase production to reduce the cost of oil for consumers. While the White House retreated after its assertion, Trump has escalated the pressure, demanding that OPEC stop what he calls his manipulation of the oil market and insists that the group pump more.
Saudi Arabia led last month The countries and allies, including Russia in an agreement to cool prices. While abiding by a 2016 production-limiting agreement, they decided to pump more to offset the loss of OPEC supplies to Venezuela and Libya. Brent crude has gained 3.7% since then, because of these lost barrels and Trump's call for his allies to stop buying in Iran. The benchmark fell 1.5% to 78.22 dollars a barrel at 7:25 am in London
"Saudi Arabia is under massive pressure," said Jaafar Altaie, chief executive of Manaar consulting group in Abu Dhabi. "The Saudis would prefer a gradual increase in oil production that will not shock the market, they prefer to keep prices between $ 70 and $ 80 a barrel, but for political reasons they have to respond to Trump's demands." [19659005] Trump tweeted before OPEC's June 22 meeting that he hoped the group would add barrels, following a message he had sent in April at a meeting of China, the world's largest consumer of oil, and India, the country that displays the greatest appetite for energy, have added their own complaints after rising prices
'Motivated politically "
Iran, the third largest producer of OPEC, lambasted Trump's interventions and Saudi Arabia's accommodative responses. US call for an increase in production "politically motivated against the IR year, "wrote the Minister of Petroleum, Bijan Namdar Zanganeh, in a letter to the President of OPEC. He added, "The case is over," said Robin Mills, general manager of Qamar Energy's consultant in Dubai. "It's a blow for OPEC, partly because of the impression that the Saudis are following the US auction, but mostly because Saudi Arabia and Russia have entered into a agreement to increase production before the meeting. "
also complicate the planned sale of shares in Saudi Arabia said Manaar Altaie. The initial public offering is the centerpiece of the kingdom's strategy to diversify its economy from oil, and the government says it could generate $ 100 billion.
The involvement of the US president adds to the already existing problems in an IPO, "said Altaie." This reinforces the impression that there is a lack of independence in the company. 39, business and gives the impression that Trump is setting up a Saudi oil policy. "
Saudi Arabia, which pumped 10.30 million barrels a day in May million barrels per day of unused production capacity to stabilize markets According to analysts Wood Mackenzie Ltd. and Qamar & # 39; s Mills, adding the total amount of crude would create an overabundance and could plunge prices, which could also be back against the others, digging divisions between geopolitical rivals and Iran, the markets that consider the kingdom as the global producer of last resort.
"More oil on the market must be bearish", a said Mills. "But in the longer term, there is a compensatory question of unused capacity which could be optimistic. "
( Refreshes oil prices in the third paragraph. )
Source link
