Economy

Trump slams OPEC urging oil cartel to "get prices down now"

Trump slams OPEC urging oil cartel to

He has also previously criticised the oil producer group, whose members include Qatar, Saudi Arabia and Kuwait, accusing it of driving prices higher. But with Trump keeping up the pressure ahead of the November mid-term elections, "what should stop the Saudis and Russians producing more?"

"The OPEC monopoly must get prices down now". "Refusing to step up production would mean going against the will of ally Trump, but giving in to Trump's demand would make it his accomplice, which could see Opec tested to the limit". These changes in crude oil shipments, as well as the mix between foreign and domestic crude oil inputs to East Coast refineries, have followed price movements in crude oil markets. "We will remember", Trump tweeted.

Aside from the presidential tweets, pressure has been mounting on OPEC to increase production ahead of U.S. sanctions against Iran, which come into effect in November. Venezuela's cratering economy and Libya's tenuous security also present supply risks to the market. "Novak has done what he could do to help Perry, Al-Falih not yet".

Changes to United States crude oil transportation infrastructure in the past three years, such as expanded pipeline capacity out of the Midwest (defined as Petroleum Administration for Defense District 2) and increased availability of coastwise-compliant shipping in the Gulf Coast (PADD 3), have altered the costs of transporting crude oil domestically.

High gas prices can be an issue for voters, and Trump's attacks come just a couple of months ahead of USA midterms, where analysts say rising prices could hurt Republicans.

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Falih met with Russian counterpart Alexander Novak last weekend to align their positions, with the two ministers saying in a joint statement that they remained committed to "ensuring the adequacy of oil supplies, especially considering market uncertainties on the horizon".

Falih also met last week with US Energy Secretary Rick Perry, who praised the efforts of Saudi Arabia and Russian Federation to keep the market well-supplied. The EIA said the United States likely now leads the world in crude oil production, moving past Saudi Arabia and Russian Federation. Saudi Arabia hasn't yet fulfilled its pledge to lift output to an all-time high, but the kingdom has still added nearly half a million barrels to daily supply since May. "The simpler and achievable goal is to avoid disastrous price spikes, which they can do by coordinating with other producers".

Russian Federation has increased its productivity by more than 200,000 bpd (barrels per day).

USA sanctions affecting Iran's oil exports come into force on November 4 and many buyers have already scaled back Iranian purchases. Saudi Arabia has been especially keen to keep Russian Federation in the fold, to boost the market clout of the producer group and strengthen burgeoning bilateral ties.

"It's likely to be a meeting high on politics and low on decisions", said Ole Sloth Hansen, head of commodity strategy at Saxo Bank A/S. "This does not preclude the Algiers meeting laying down the ground work".