Crude Oil Standstill Near Two-month Low - Quick Trade Plan


The request comes after US retail petrol prices surged to their highest in more than three years and US President Donald Trump publicly complained about Opec policy and rising oil prices.

He told Reuters that he does not believe OPEC will allow the increased production, and warned that oil prices would rise as a result of the Trump administration's sanctions on Iran and Venezuela.

Saudi Arabia, Iran's arch rival, has always been a close U.S. ally, but direct pressure on any Organization of the Petroleum Exporting Countries (OPEC) member is rare.

Saudi Arabia's pricing announcement for its monthly crude exports gives the first indication of how Gulf producers see markets. Saudi Arabia's crude use can double as oil helps run air conditioners in the desert kingdom. It also follows Washington's decision to re-impose sanctions on Iran's crude exports, which could disrupt global oil supply.

Total exports of crude oil from OPEC averaged 24.86 mb/d in 2017 declining by 406,000 b/d, or 1.6 percent, as compared to 2016, according to the data. The deal is due to expire at the end of 2018.

Oil prices fell on Friday, as weakening demand in China and surging US output weighed on markets despite supply woes in Venezuela and Iran as well as OPEC's production cuts.

"No one in OPEC will act against two of its founder members", he said.

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Mexican oil output could return to 2 million barrels per day (bpd) by about 2022 from 1.886 million bpd in April if the next government pursues plans to auction off development blocs to private investors, Energy Minister Pedro Joaquin Coldwell said on Tuesday.

OPEC will meet in Vienna on June 22 to decide whether the group and non-OPEC producers, including Russian Federation, should raise output to make up for any supply shortfall from Iran and Venezuela.

However, Saudi Arabia and Russian Federation have said cuts could be eased after receiving calls from consumers including the United States, China and India to support global demand.

"OPEC will not accept such a humiliation".

The Latin American oil producer is already subject to USA sanctions and faces the prospect of stiffer penalties after a panel enlisted by the Organization of American States last month accused President Nicolas Maduro of committing crimes against humanity. Crude prices will be volatile until the meeting and any announcement regarding future production.

Reuters reported in late May that OPEC and its allies could raise production by about 1 million bpd from July to address any potential oil shortages. "The countries will not risk a landslide in prices after suffering from the oil crash of 2014", Benjamin Lu of Singapore-based brokerage Phillip Futures said on Friday in a note.