Published: Mon, September 24, 2018
Money | By Arnold Ball

Oil rises on USA crude stock draw, supply concerns

Oil rises on USA crude stock draw, supply concerns

However, President Trump sent it lower with a tweet yesterday criticising the high oil prices and letting OPEC know he wants to see it down. This comes after the June 22 agreement between the OPEC (Organization of the Petroleum Exporting Countries) and Russian Federation for increasing the production and reducing the prices.

The U.S. Energy Information Administration (EIA) released its weekly petroleum status report Wednesday morning showing that U.S. commercial crude inventories decreased by 2.1 million barrels last week, maintaining a total U.S. commercial crude inventory of 394.1 million barrels. U.S. light crude oil was up 30 cents at $71.42 a barrel after rising almost 2% on Wednesday.

According to the minister, oil at $80 a barrel is a "suitable" price.

Zanganeh said that the agreement reached in 2016 between OPEC member states and non-OPEC allied producers, mainly Russian Federation, to cut crude output "is in tatters".

Prices have traded mostly below $80 over the past few months on fears trade tensions between the USA and China could damp global demand.

OPEC and its allies are unlikely to agree to an official increase in crude output when they meet in Algeria this weekend, although pressure is mounting on top producers to prevent a spike in oil prices above $80 a barrel ahead of new USA sanctions on Iran, OPEC sources told Reuters on Thursday.

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Mark Judge , the other person supposedly in the room during the incident, claims he never saw Kavanaugh behave how Ford describes. Joe Walsh, a former Republican congressman from IL , was less tempered in his criticism. "I think it would".

Capital expenditures also increased year on year in Q2-by 2 percent to US$70 billion, the EIA review of 76 USA energy companies, 13 Canadian firms, 9 European, and 9 other companies showed. Brent Crude oil prices were 48 percent higher in Q2 2018 than in Q2 2017 and averaged $75 per barrel, the highest since the fourth quarter of 2014, EIA data showed.

"Midterm elections are coming up and high oil prices are bad PR for the party heading into the election", said Cook.

Trump has consistently complained that oil prices are too high, following a significant uptick in prices that has been passed on at the pump to USA drivers. While by no means overwhelmingly positive, supply has rebounded millions of barrels from the releases of last Tuesday/Wednesday.

By beating Russian Federation and Saudi Arabia, the United States of America this year has become the topmost crude oil producer.

Consider that in 2010, the United States was only producing about half of the 11 million barrels per day it reached in July of this year. The price of oil is up 7 percent in the last month and almost 18 percent for 2018. Saudi Arabia, Russia and other major producers are scheduled to meet in Algiers on Sunday to review their strategy after the group agreed to increase production in June.

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