Iran tells Trump: Stop tweeting, it's driving up oil prices

Iran tells Trump: Stop tweeting, it's driving up oil prices

"Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction (sic) in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference..."

President Donald Trump has again lashed out at an worldwide body - this time, it's the Organization of the Petroleum Exporting Countries (OPEC), which he accused Wednesday afternoon of driving up gas prices.

Earlier in the day, Iranian President Hassan Rouhani lashed out at American officials for threatening to stop Iran's oil exports, saying they would never be able to carry out such a threat.

Both countries resisted the oil cartel's decision in June, even though OPEC demurred on how much it would boost supply. He also called on the United States to join world powers in a meeting with Iran in Vienna on Friday. While OPEC is facing mounting pressure from Trump to do more, America's sanctions on group members Iran and Venezuela are adding uncertainties, just as USA tariffs on Chinese goods kick in on Friday.

The price for Brent crude oil, the global benchmark for the price of oil, was up 1.32 percent as of 9:15 a.m. EDT to $78.32 per barrel.

But Tehran has threatened to take drastic action on the oil supply in retaliation against Trump's attempt to curb its exports.

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Recent price rises have also been spurred by a US announcement that it plans to reintroduce sanctions against Iran from November, targeting oil exports. "We also expect Venezuelan production to decline a further 150,000 bbl/d towards year-end, with risks still skewed to the downside", Bjørnar Tonhaugen, vice president of oil market research at Rystad Energy, said. Analysts and traders were predicting a draw of 1 million barrels.

Over the short-run, Canada's production problems will go away and Libya's issue will probably be contained.

OPEC pledged to relax compliance with an agreement that helped balance an oversupplied market, but that might not be enough to address a looming deficit of around 2 million barrels per day. About 450,000bpd of exports has been lost due to Libyan conflict.

Indeed, the timing of his concerted effort to compel an OPEC production hike clearly indicates that he understands the State Department's demands that allies cut imports of Iranian crude to zero by November has the potential to push prices materially higher.

Chinese stocks fell sharply on Tuesday, with equity markets in Asia near nine-month lows as investors fear the Sino-U.S. trade row could derail a rare period of synchronized global growth.

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