Published: Fri, June 22, 2018
Markets | By Josh Butler

Iran rebuffs Trump's call for OPEC to increase oil output

Iran rebuffs Trump's call for OPEC to increase oil output

The 14 countries in the Organization of the Petroleum Exporting Countries make more money with higher prices, but are mindful of the fact that more expensive crude can encourage a shift to renewable resources and hurt demand.

Iran, along with Venezuela and Iraq, is going to veto the Saudi Arabia's proposal at the June 22 OPEC meeting in Vienna, Hossein Kazempour Ardebili was quoted by Tehran Times daily as saying.

Experts like Michael Hewson, chief market analyst at CMC Markets U.K., note that the price of oil is high not only because of OPEC and Russia's agreement to limit output, but also because of Trump's policies, including a decision to reinstall sanctions on Iran.

Oil prices fell on Thursday as crude producers appeared to be nearing a deal to increase production at an OPEC meeting in Vienna on Friday, but pared losses after a report of a large stockpile draw at a key storage in the United States.

Non-OPEC members including Russia, Oman and Mexico also agreed to cut 558,000 bpd off their production to stabilise the market.

Tokyo ended 0.8 percent down, while Singapore sank more than one percent, Seoul dropped 1.3 percent and Manila tumbled 2.5 percent. That crimped the country's ability to export crude, limiting supply and pushing up global prices. The WTI has fallen back from $72.83 to $64 partly as a result of market expectation that OPEC will increase the production in the second half of the year.

Woman injures 2 in southern France with box cutter
A sense of edginess has been with France since a murderous series of killings in 2015 in the name of the Islamic State group. Mr Marchal said: "This appears to be an isolated incident caused by a person with proven psychiatric troubles".

"Oil prices are reversing this morning's bout of weakness as bottom pickers enter the fray ahead of this week's crucial OPEC/non-OPEC meeting", said Stephen Brennock, analyst at London brokerage PVM Oil Associates.

The Organization of the Petroleum Exporting Countries holds its biannual meeting in Vienna on Friday and is widely expected to agree to pump more, possibly supported by some other producers outside OPEC, including Russian Federation.

A cut in Chinese purchases of U.S. oil may also benefit Iran's sales, which Washington is trying to curb with new sanctions it announced in May.

Elsewhere, Venezuela, which faces the threat of U.S. sanctions and is in the midst of an economic crisis, is almost a month behind delivering crude to customers from its main oil export terminals, and chronic delays and production declines could breach state-run PDVSA's supply contracts if backlogs are not cleared soon. "We will raise this issue there", the oil minister told reporters here at a CII conference. Brent crude jumped $1.55 to $74.99 a barrel. Last week, US President Donald Trump, once again, reiterated that oil prices were too high. Several OPEC countries are not able to increase the production. Total volume traded was about 41 per cent above the 100-day average. OPEC output was last lower in April 2017 at 31.85 million b/d, the last month before West African producer Equatorial Guinea became its newest member. Well, we have to wait until the price reaches the 50 SMA, don't we?

Resistance is being led by Iran, deeply wary of any move by regional rival Saudi Arabia that could push down oil prices at a time when Tehran faces renewed sanctions following US President Donald Trump's decision to quit its worldwide nuclear deal, which is likely to send the country's oil exports plummeting.

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