Trump says Saudis must compensate for drop in Iran oil supply

Trump says Saudis must compensate for drop in Iran oil supply

Crude oil prices saw mixed activity today, widening the spread between WTI and Brent crude as Libya's oil production continues to suffer at the hands of the two rival NOC factions who are determined to duke it out.

Iran, however, says that they intend to try to circumvent the USA ban with new rules to make it easier to export oil.

He hopes that will keep prices low - and motorists happy with cheaper fuel - as he tries to force the Iranians out of the market.

Trump's comments on Sunday mark an escalation of his already controversial trade policies toward the United States' European allies.

An oil tanker is loaded at a Saudi Aramco refinery and terminal in Ras Tanura, Saudi Arabia, in May.

So, how much support can Trump garner for his economic assault against Iran?

"We are working to minimize disruptions to the global market, but we are confident there is sufficient global spare oil capacity", Hook said.

President Donald Trump lashed out at OPEC with a warning to stop manipulating oil markets and piled pressure on US ally Saudi Arabia to raise supplies to compensate for lower exports from Iran.

Oil prices rose last week on worries that US sanctions against Iran would take away significant volumes of crude oil from world markets while oil demand worldwide increases.

President Donald Trump lashed out at OPEC with a warning to stop manipulating oil markets and piled pressure on close U.S. allies in an interview that aired on Sunday with a threat to sanction European companies that do business with Iran.

The spike was the latest fallout from the Trump administration's decision to abandon the landmark Iran nuclear deal and reimpose sanctions on Iran - a move that has strained relations between the United States and other world powers that support the deal.

Last month President Donald Trump withdrew the United States from the landmark Iran nuclear deal, re-imposing U.S. sanctions that had been suspended in return for curbs on Tehran's nuclear programme.

But among Iran's three biggest buyers of oil - China, India, and Turkey - only India has buckled under the US pressure.

The president also had tough words for other U.S. allies.

The quick drop after WTI reached US$75 might have been due to "a bout of long liquidation in front of the holiday", said Bill O'Grady, chief market strategist at Confluence Investment Management in St. Louis. "Their companies - their companies will be subject to the same sanctions that everybody else's are if they engage in those sectors of the economy that are sanctionable, where there were sanctions imposed prior to 2015", the unnamed U.S. State Department Official told the media on June 26.

A survey of analyst expectations from S&P Global Platts revealed expectations of a drain on US crude oil inventories of 4.5 million barrels last week, adding support to the concerns about a market deficit. It's bad what they do to us, he said.

Saudi Arabia's output is up by 700,000 barrels per day (bpd) from May, a Reuters survey showed, and close to its 10.72 million bpd record from November 2016.

Related news: