Are gasoline prices in the USA really too high?

Oil prices chart new territory on supply-side concerns

The Saudi Arabian Oil Co., better known as Saudi Aramco, lowered August prices for light oil to Asia by 20 cents to $1.90 a barrel above the Middle East benchmark, according to Bloomberg.

Oil prices fell earlier today as Trump demanded that the OPEC cartel reduce crude prices.

Iran's representative to OPEC says U.S. President Donald Trump should stop tweeting about wanting lower oil prices, saying that doing so has the opposite effect.

In a follow-up Twitter message on July 4, the president said that "the United States defends many of those countries for very little $'s".

"This must be a two way street", he wrote, adding in block capitals, "REDUCE PRICING NOW!"

The war of words over oil prices continues between US President Donald Trump and Iran, and the latest salvo from Iran is for Trump to stop tweeting. It has made similar threats in the past, prior to the 2015 nuclear deal.

Oil prices edged up on Wednesday, lifted by a report of declining USA fuel inventories amid the ongoing crude supply outage at Syncrude Canada in Alberta, which usually supplies the United States.

Crude pared gains after hitting a three-year high in NY as prospects for accelerating supply damped enthusiasm for the rally and traders curbed bullish bets before a USA holiday.

"OPEC has not defined oil prices for the past 30 years", Kazempour said. The worldwide community had expected sanctions waivers for some countries, a tactic used in the Obama era to avoid supply shocks.

A supply outage in Libya is adding extra upside support.

Iran's OPEC Governor Hossein Kazempour Ardebili told the state-run Shana news agency Trump's policy on Iranian oil is "a kind of self-harm".

Kazempour said Trump was trying to intensify tensions between Iran and Saudi Arabia.

On Tuesday, Morgan Stanley raised its Brent forecast to US$85 per barrel, from US$77.5, citing concerns that the United States may succeed in blocking much of Iran's 2.7 million barrels per day. Analysts and traders were predicting a draw of 1 million barrels.

According to Bank of America Merrill Lynch, oil prices will hit $90 a barrel by the second quarter of 2019, as Iranian oil barrels are removed from the market and other supply disruption risks threaten the tightening oil market. West Texas Intermediate was down 1.2% to $73.30 a barrel.

Brent crude declined from its $115 per barrel peak in June 2014 to below $30 in January 2016 before recovering to its current price of around $78.

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