Oil price soon to reach $100 per barrel

Oil price soon to reach $100 per barrel

Oil price soon to reach $100 per barrel

Oil prices fell on Thursday after US President Donald Trump sent a tweet demanding that OPEC reduce prices for crude, Reuters reported.

"The responsibility of paying unnecessary prices for oil by all consumers of the whole world, especially in U.S. gas stations, is exclusively upon your (Trump's) shoulders and the price of over $100 per barrel is yet to come", Kazempour said.

In his latest tweet on the subject on Wednesday, Trump said that the "OPEC Monopoly must remember that gas prices are up & they are doing little to help".

Brent crude futures were up 11 cents $78.35 a barrel.

Trump again accused the Organization of the Petroleum Exporting Countries of driving fuel prices higher on Wednesday, and urged U.S. allies such as Saudi Arabia to pump more oil. If anything, they are driving prices higher as the USA defends many of their members for very little $'s.

Brent crude futures LCOc1 were at $77.78 per barrel at 0137 GMT, down 46 cents, or 0.6 percent, from their last close. "REDUCE PRICING NOW!" Trump wrote on Twitter.

"Saudi lowered some of the prices for some of its products to Asia and to Europe and to the U.S. Seems like this is sort of related to Trump tweets", said Stewart Glickman, energy equity analyst at CFRA Research in NY.

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Similarly, the Organisation of Petroleum Exporting Countries (OPEC) report indicated that Saudi Arabia raised oil output by nearly 500,000 barrels per day last month.

Saudi Arabia's objective, revealed at the OPEC meeting in June, has been to stabilise production and prices around current levels.

To make up for potential shortfalls in supply from Iran sanctions as well as other disruptions including Libya and Venezuela, the Organization of the Petroleum Exporting Countries (OPEC) has agreed with Russian Federation and other oil-producing non-OPEC members to raise output from July.

Output cuts by OPEC and allies since January 2017 have reduced a crude glut.

Even so, renewed US sanctions on Iran against its oil exports look set to tighten supply further.

According to analysts, escalating tensions between China and the US, with the two largest economies in the world implementing tariffs $34 billion on their respective imports and the threat of more action, could weigh on crude prices and soften demand expectations.

An Iranian Revolutionary Guards commander, meanwhile, said Wednesday Tehran might block oil shipments through the Strait of Hormuz, a major route for transporting crude in the Arabian Gulf.

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