Trump bullies OPEC...again


Trump's fresh intervention in the oil market comes before a meeting of ministers from the Organization of Petroleum Exporting Countries and its allies in Algeria on Sunday, Bloomberg reported.

OPEC kingpin Saudi Arabia is caught between a rock and a hard place, seeking to prevent prices from rising far above $80 a barrel ahead of the congressional elections while fending off doubts over its ability to compensate for a drop in Iranian supply. That's been a red line for the White House in the past, provoking the president to direct his first social-media barb against the cartel since July 4.

'We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices!

US crude was on track to end the week up 2.5 percent and Brent to post a 0.9 percent gain.

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 United States drivers.

The president is returning to a playbook that's won him significant victories already this year.

After languishing at less than 6million barrels of oil per month between 2000 and 2011, American oil production began rapidly increasing from 2012 onwards.

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In 2016, major producers both within and outside OPEC agreed to slash production in an attempt to boost prices following the 2014 oil market crash.

Over the past year, refiners in the East Coast have been receiving as much USA crude oil from the Gulf Coast by tanker or barge as they have received from the Midwest by rail.

The Lone Star state no the U.S. has climbed up the rankings in terms of energy security because it w produces so much oil that it would be ranked third in the world on its own if it were a country, outstripping the likes of Iraq and Iran.

Brent has been trading just below $80 a barrel, backed by concerns of supply shortages from looming USA sanctions against Iran, which are set to take effect in November.

The change in the kingdom's view on prices coincided with some intense oil diplomacy.

U.S. Energy Secretary Rick Perry had separate meetings with Saudi Arabian and Russian officials this month. USA crude oil accounted for 19 percent of total East Coast crude inputs for the first half of 2018, compared with 48 percent in the same period of 2015, when the Brent-WTI price spread also averaged $5 per barrel.