Sunday, 1 July 2018

Trump Piles Pressure on Saudis Flummoxed by Oil-Price Increase - Bloomberg

Trump Piles Pressure on Saudis Flummoxed by Oil-Price Increase - Bloomberg:

If the world’s biggest crude exporter says it’s going to ramp up production, prices usually drop. But as Saudi Arabia adds barrels before its customers get burned, prices have jumped. And Donald Trump isn’t happy. The U.S. president tweeted on Saturday that the Saudi king had agreed to raise production to cut the cost of oil for consumers. While the White House later backpedaled from his assertion, Trump on Sunday compounded the pressure, demanding that OPEC stop what he called its manipulation of the oil market and insisting the group pump more. Saudi Arabia last month led the Organization of Petroleum Exporting Countries and allies including Russia into a deal aimed at cooling prices. While sticking to a 2016 agreement limiting output, they decided to pump more to offset lost supply from OPEC’s Venezuela and Libya. Brent crude has gained 5.2 percent since then, due to those lost barrels and Trump’s call for allies to stop buying from Iran. The benchmark rose 2 percent on Friday to $79.12 a barrel.

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