Oil falls as Trump urges OPEC to reduce prices

US oil touches $75 amid fears Iran will block Middle East shipments

"Your tweets have driven the prices up by at least $10 per barrel", he added. The oil boss also accused Trump of fomenting tensions in the Middle East, specifically by pitting Iran against Saudi Arabia.

Oil prices dropped yesterday, falling 97 cents to $73.17.

This comes in the light of increased pressure from the Trump administration on allies to stop funding to Iran.

In response to Trump's remarks, Iran's OPEC representative urged the president to "please stop" tweeting about lower oil prices, according to a Reuters report. Some members should remember that the United States is defending them for little reciprocal benefits, he added.

Trump might have good reason to worry about gasoline prices being used against him and his fellow Republicans.

Tehran blames rising prices on U.S. sanctions imposed on Iran and Venezuela, founding members of the cartel. "Since when did you start ordering OPEC", he said, according to Shana. That means there's a shrinking buffer to protect against the shocks like the eventual loss of Iranian oil or a hurricane in the U.S. Gulf of Mexico. Many coutries have not committed to the USA ban, and if prices rise, Iran may ultimately take in just as much money even with fewer exports.

The global benchmark slipped 23 cents, or 0.3%, to US$78.01 a barrel at 2:05pm in London.

Oil prices have risen in the past 12 months to a peak in late June and early July.

Iran's representative to OPEC, Hossein Kazempour Ardebili, told Reuters that Trump was responsible.

"The OPEC Monopoly must remember that gas prices are up & they are doing little to help", he wrote.

Saudi Arabia cut pricing for most of its oil grades as the world's biggest crude exporter is increasing production to assure buyers there is sufficient supply following U.S. President Donald Trump's demands that OPEC do more to stabilize oil markets. And while USA shale oil production continues to rise, global demand for oil remains strong.

There are a number of factors behind the recent price rise.

In addition, a potential fall in Iranian supplies due to US sanctions is a factor too. Morgan Stanley raised its Brent crude forecast to US$85 a barrel through to the third quarter of 2019, citing a tighter market than previously anticipated. Find us on Facebook too!

The price went up when OPEC chose to cut production past year. At the same time- racked by internal crises-Libya and Venezuela are also struggling to meet their outputs. Although Iran does not have spare capacity to pump more oil to offset lower oil prices, experts say renewed sanctions mean the country is more interested in tightening the screws on arch-rival Saudi Arabia that prefers higher prices. However, the global oil body's spare supplies are limited and "will not be enough if supply is additionally reduced by outages elsewhere", the bank said.

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