Trump's Tweet on Deal With Saudi King Makes Oil Prices Plummet

A group of protesters chant slogans at the main gate of old Grand Bazaar in Tehran Iran

President Trump has always been critical of OPEC and rising oil prices, and the agreement from Saudi Arabia has a broad impact on global oil supply while other nations, like Venezuela, cope with falling production.

The vice president also noted that the "vulnerable" social layers should be helped after re-imposition of sanctions.

This has been United States policy since President Donald Trump pulled out of the Iran nuclear accord on May 8, but many foreign capitals have been demanding waivers to allow some trade to continue.

Trump was not specific on whether the additional 2 million barrels was a per-day figure - but worldwide daily demand is nearing 100 million bpd.

"Now, we are working to minimize disruptions to the global market, but we are confident that there is sufficient global spare oil production capacity".

Outside North America, looming US sanctions against major oil exporter Iran were the focus of attention.

Turkey has also said it would keep up Iranian crude imports, while China, the largest consumer of Iranian crude oil, has criticised the U.S. for withdrawing from the deal.

Monica Malik, chief economist, Abu Dhabi Commercial Bank, welcomed the UAE's decision to hike output later this year as it will bring stability in the oil market and also improve government revenues from hydrocarbon sector.

(ADNOC) said on Tuesday it could increase production by several hundred thousand barrels per day if needed.

"We will surely do something to thwart the U.S. rallying cry that Iranian oil must be stemmed", First Vice President Eshagh Jahangiri said in statements broadcast on state television.

The move lower is attributable to Saudi Arabia's willingness to increase demand at the request of US President Donald Trump.

He explained that it was hard to anticipate how the market would integrate with a possible increase in crude oil output from major producers, referring to Saudi Arabia and Russian Federation.

Inventories at Cushing fell 2 million barrels last week, according to a separate forecast compiled by Bloomberg.

Matthew Smith, the director of commodity research at ClipperData, told UPI that oil prices so far this week are moving on one hand on OPEC pledges of more production, but correcting later on fears of supply-side strains.

This was due to outages around the world from Libya to Canada and Venezuela are keeping priced elevated. "Of course. That's what we're doing, absolutely", he said.

Mr Trump is not the first US President to attack OPEC.

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