Economy

Trump goes 'America First' on Opec, but his policy faces limitations

Trump goes 'America First' on Opec, but his policy faces limitations

"Opec and non-Opec countries participating in the Declaration of Cooperation remain unwavering in their commitment to contribute to market stability, in the interests of producers, consumers and the global economy", Mazrouei said in a statement.

Pressure to liquidate may have accelerated ahead of the USA holiday on Wednesday, said Tariq Zahir, managing member at Tyche Capital in NY.

President Trump also touted the promise in a tweet Saturday.

"With Trump not backing off on Iran sanctions, lot of geopolitical risk is there on crude oil and 1mpbd of Iranian crude oil production could be lost to the market".

Saudi Arabia doesn't seem to be in a rush to fulfill Trump's request for an extra 2 million barrels per day.

But a flurry of USA announcements over the weekend unsettled oil markets.

First Vice President Es'haq Jahangiri said on Monday that Iran is able to counter the looming US sanctions, noting that those at the White House who think they can halt Iran's oil export are living in "illusion".

Turkey has also said it would keep up Iranian crude imports, while China, the largest consumer of Iranian crude oil, has criticised the USA for withdrawing from the deal.

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Crude oil prices rose on Tuesday with the USA benchmark hitting a four-year high on expected drains in domestic inventories and outages in Libya.

The firm acknowledges that Saudi Arabia is now raising production and expects Russian Federation, the United Arab Emirates and Kuwait to pump more oil, but says it will not be enough to balance the market.

Some major importers of Iranian crude have sent mixed signals on their willingness to abide United States sanctions, particularly as inventories remain low.

The president also had tough words for other U.S. allies.

"And so, we are not looking to grant licenses or waivers broadly on the reimposition of sanctions, because we believe pressure is critical to achieve our national security objectives", he said.

The spike was the latest fallout from the Trump administration's decision to abandon the landmark Iran nuclear deal and reimpose sanctions on Iran - a move that has strained relations between the United States and other world powers that support the deal.

Three members of the Organization of Petroleum Exporting Countries - Libya, Iran and Venezuela - are posting real, or have expected, production declines.

Iran is India's third-largest oil supplier behind Iraq and Saudi Arabia. It's awful what they do to us, he said.