News ID: 217813
Published: 1243 GMT July 05, 2018

Oil near three-and-a-half year high despite Trump demand that OPEC cut prices

Oil near three-and-a-half year high despite Trump demand that OPEC cut prices

Oil traded near its highest in 3-1/2 years on Thursday, boosted by potential disruptions to flows from Iran and the Middle East despite a fresh demand from U.S. President Donald Trump that OPEC cut prices.

Trump again on Wednesday accused the Organization of the Petroleum Exporting Countries of driving up fuel prices, according to Reuters.com.

OPEC together with a group of non-OPEC producers led by Russia started to withhold output in 2017 to prop up the market.

Recent price rises have also been spurred by a U.S. announcement that it plans to reintroduce sanctions against Iran from November, targeting oil exports.

OPEC and Russia said in June they were willing to raise output to address concerns of supply shortages due to unplanned disruptions from Venezuela to Libya, and likely also to replace a potential fall in Iranian supplies due to U.S. sanctions.

Despite these measures, Goldman Sachs said in a July 4 note to clients that “the market will remain in deficit” in the second half of the year.

An Iranian Revolutionary Guards commander, meanwhile, said on Wednesday that Tehran might block oil shipments through the Strait of Hormuz, a major route for transporting crude in the Gulf.

“If they want to stop Iranian oil exports, we will not allow any oil shipment to pass through the Strait of Hormuz,” Ismail Kowsari was quoted as saying.

   
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