Trump on Friday accused OPEC of "artificially" boosting oil prices, threatening on Twitter that this "will not be accepted", drawing rebukes from several of the world's top oil exporters within OPEC. The crude glut that's weighed on prices for three years has nearly been wiped out by OPEC's production cuts, but instead of celebrating victory the group is finding reasons to keep going and drive fuel inventories even lower.
"Crude prices are now sitting at the highest levels in three years, reflecting ongoing concerns around geopolitical tensions in the Middle East, which is the source of almost half of the world's oil supply", ANZ bank said.
A technical OPEC and non-OPEC committee meeting in Jeddah on Thursday, ahead of Friday's ministerial meeting, found that a global overhang in oil inventories, which the deal has targeted for eliminating, has virtually disappeared.
"There are a number of customers who still may test US crude oil", Wech said.
Brent crude oil rose for sixth day on Tuesday, passing $75 a barrel, on expectations that supplies will tighten because fuel is rising at the same time the United States may impose sanctions against Iran and Opec-led output cuts remain in place.
Speaking on the sidelines of signing a contract for the construction operation of Iranshahr-Chabahar gas transmission pipeline, he said, "although Iran enjoys sufficient land area in Mokran Coastal Area, we have not taken advantage of it as strategic region in terms of linking Persian Gulf to Sea of Oman". "Whenever there is a headline involving Saudi Arabia and military action, the oil market notices".
We are doing our role to correct the market, Al Mazrouei said.
"The fear of geopolitical risk, and the reality that supply will tighten again this week, brought the market back", said Phil Flynn, senior market analyst at Price Futures Group.
The stated goal of the supply cut is to reduce the excess in oil stocks to that of the five-year average, although oil ministers have said other metrics should also be considered.
Meanwhile, prices also found some support from a rift between Iran and Saudi Arabia over the kingdom's desire to extend the OPEC-led supply cut agreement beyond 2018.
India's crude oil output fell for the sixth straight year in 2017-18 to 35.7 million metric tonnes as production at ageing fields continued to decline. "The deal helped to restore the industry of Texas", he said in an interview with Bloomberg television. Trump is correct that OPEC, the Saudi headed pact has arranged excessive prices as is expected out of it.
The glut oversupply did play havoc with oil companies and oil investors.
OPEC and 10 producers outside the cartel have been holding back crude output by 1.8 million barrels a day since the start of a year ago, part of a coordinated effort to rein in a supply glut that had weighed on prices since late 2014 and boost prices.