Published: Wed, June 13, 2018
Finance | By Claude Patterson

Trump accuses OPEC of raising oil prices


Donald Trump and Iran exchanged sharp words over oil prices on Wednesday, with Tehran accusing the US president of contributing to volatile prices after he withdraw from a global nuclear arms deal last month.

His tweet comes in advance of a meeting of the Organization of the Petroleum Exporting Countries and Russian Federation planned for June 22 in Vienna to discuss easing supply caps that have been in place since the beginning of 2017.

Iran's OPEC governor, Hossein Kazempour Ardebili, fired back quickly at Trump's words.

The world's top crude producers are key partners in the OPEC+ deal, which is created to prop up oil prices by cutting global output. Trump wrote on Twitter in April. In late May, that decline reversed and the price oil declined as Russian Federation and Saudi Arabia indicated a willingness to accept lower prices.

In the letter, the senators said a run-up in oil prices is "effectively a tax on every American family's discretionary budget" since the price of oil directly affects the price of gasoline.

OPEC and various non-OPEC oil producers are set to convene in Vienna later in the month to discuss future production.

The U.S. move has put pressure on European and Asian clients to stop importing Iranian oil or doing business with the country. The International Energy Agency said Saudi Arabia and other Gulf producers may need to boost supply to offset potential losses of 1.5 million barrels a day from Venezuela and Iran by next year.

However, OPEC's president, Suhail Al Mazrouei, said on Tuesday that the USA has not asked the group to increase oil production in the wake of political unrest in oil-rich Venezuela and US sanctions on Iran.

However, it is unclear whether other nations will commit to raising production. Prices nationwide have edged up toward $3 USA a gallon as the U.S. hits its peak summer travel season, still less than the $4 United States a gallon in 2008 during the 2007-2009 Great Recession.

After Trump tweeted his unhappiness with the price of oil in April, the price of oil fell.

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