US Oil Production Jumps, Eyes 11 Million; Trump Hits OPEC On Prices

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As Bloomberg writes in an article "Iran Expects OPEC to Stick to Supply Limits", the Organization of Petroleum Exporting Countries and its partners will meet next week and debate whether to restore output halted a year ago.

In response, Saudi Arabia, Iran's rival and the largest producer in OPEC, said it would consider increasing supply. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High!

With output in Russian Federation rising back above 11-million barrels a day in June, and Saudi production climbing back above 10-million barrels a day, supplies from the top three producers are increasing. The block accounted for about 83 per cent of India's total crude oil imports, 98 per cent of its LPG imports and 74 per cent of its LNG imports during the last financial year ended March 31, 2018.

U.S. President Donald Trump and Iran exchanged sharp words over oil prices, with Trump blaming OPEC for high oil prices and Tehran accusing him of stoking volatility after he withdrew last month from a global nuclear arms deal with Iran. The headlines have sent the price down over the last few minutes of trading.

West Texas Intermediate traded at US$66.03 a barrel and Brent crude was at US$75.83 a barrel. Adding to their $500bil of losses since if all production growth is unprofitable what makes oil prices high??

But the Paris-based IEA, echoing statements from oil producers as well as analyst comment in recent weeks, said there may be a change to the so-called Vienna agreement.

The disagreement has revived memories of a 2011 meeting that former Saudi oil minister, Ali al-Naimi, called one of the group's worst ever - talks collapsed when a majority of members refused to endorse a Saudi push to pump more.

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Crude has more than doubled since bottoming out below $30 a barrel in early 2016, causing USA motorists to face the highest gasoline prices since late 2014.

The International Energy Agency - which advises consuming nations - said earlier Wednesday that output from Iran and Venezuela could drop by 1.5 million barrels a day, or nearly 30 percent, by the end of next year because of USA sanctions and economic upheaval.

The U.S. Energy Information Administration (EIA), which defines it as production that can be brought online for 30 days and sustained for at least 90 days, put OPEC's spare capacity at 1.91 million bpd in the first quarter.

In the United States, petrol pump prices nationwide have risen to near $US3 a gallon during the peak summer travel season, still less than the $US4 a gallon during the 2007-2009 Great Recession.

Rolling back most but not all of their output cuts within three months.

Trump's grousing follows reports suggesting the oil exporters group was already planning to open the spigots, an outcome the International Energy Agency hinted at in its monthly report released earlier Wednesday.