Trump's tweets hurt oil prices more than help, says StanChart

Trump's tweets hurt oil prices more than help, says StanChart

Trump's tweets hurt oil prices more than help, says StanChart

The move coincides with USA plans to reimpose economic sanctions on OPEC member Iran, including halting oil exports.

'King Salman affirmed that the Kingdom maintains a two million barrel per day spare capacity, which it will prudently use if and when necessary to ensure market balance, ' read the statement.

The White House later walked back the president's comments, saying the king had said his country could raise oil production if needed.

Saudi Arabia's output is up by 700,000 barrels per day (bpd) from May, a Reuters survey showed, and close to its 10.72 million bpd record from November 2016.

"Saudi Arabian supply increases are largely compensating for production losses and instability in key producer countries", said John Driscoll, chief strategist at JTD Energy Services Pte, who has spent more than 30 years in the oil trading industry in Singapore.

"The Trump support base is probably the part of the US electorate that will be the most sensitive to an increase in USA gasoline prices", Halff said. That was after Saudi Energy Minister Khalid al-Falih said the kingdom would honor the OPEC decision to stick to a 1-million-barrel increase. "They have to put out another 2 million barrels in my opinion, because we don't want that happening", Trump said.

Iran will apply various methods to thwart the US sanctions, Jahangiri said during a meeting of the resistance economy headquarters.

The recent strength in oil prices has in part been spurred by a US announcement that it plans to reintroduce sanctions against Iran, OPEC's third-largest producer, from November, targeting oil exports.

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"We are confident that there is sufficient global spare oil production capacity", he added.

"A fall in the price per barrel won't serve the interests of the big oil producers", Kaddour stressed. Average pump prices in the US are up 13 percent this year, rising above $3 a gallon in April for the first time since 2014. Now global oil prices have recovered to 2014 levels, OPEC has agreed to relax curbs and Saudi Arabia must decide whether market share is more important than price.

"US oil diplomacy has at points in the past been highly successful in calming oil markets, and it has generally been more successful the quieter it has been", the analysts wrote.

But the United States official, Brian Hook, also said that keeping prices stable in the absence of Iranian crude is also important.

China is the largest importer of Iranian oil with 24 percent, followed by India with 18 percent.

Hook said that the U.S. was willing to work with nations to reduce their reliance on oil production and the Organization of Petroleum Exporting Countries (OPEC) has said they will increase production from other countries, like Saudi Arabia, in order to decrease pressure on oil markets.

An Indian official says his country, which imports 400,000 barrels per day of Iranian crude, would only recognise multi-lateral sanctions, rather than unilateral sanctions. "We are also working with oil market participants, including producers and consumers, to ensure market stability".

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