Trump bashes OPEC for 'high' oil prices

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President TrumpDonald John TrumpWhat you need to know about Tuesday's elections Danny Tarkanian wins Nevada GOP congressional primary Laxalt, Sisolak to face off in Nevada governor's race MORE focused on high oil prices in a tweet on Wednesday, again laying blame on OPEC.

"The president's tweets are really telling the other oil-producing countries to step up your production to make up for the coming sharp declines that are expected in Iranian oil exports", Yergin said.

Two of Asia's largest crude buyers are considering teaming up to buy USA supplies and counter OPEC's dominance in the world's biggest oil market.

Meanwhile, IEA sees non-OPEC supply rising by 2 million bpd this year, lead by growth from the U.S. But infrastructure and logistics could constrain growth and the IEA only sees supply growth of 1.7 million bpd in 2019.

With output in Russian Federation rising back above 11 million bpd in June and Saudi production climbing to more than 10 million bpd, supplies from all three top producers are increasing.

"We have looked at a scenario, not a forecast, showing that by the end of next year output from these two countries (Venezuela and Iran) could be 1.5 mb/d (million barrels per day) lower than it is today", it said in a report.

Citing "people briefed on the discussions", Bloomberg on Wednesday said Saudi Arabia had floated several oil output hike plans to fellow cartel members.

Trump's complaints about OPEC come amid expectations of a more costly USA summer driving season. A gallon of regular gasoline is now $2.91, up 25 percent from the year-ago level.

Oil prices eased on Thursday, dragged down by rising output, although strong demand and a drop in USA fuel inventories provided the market with some support.

Since early in 2017, however, OPEC has coordinated with Russian Federation, another oil-exporting country that is not an OPEC member, to try to regulate global supplies. Instead of getting a discount for bulk purchases, West Asian producers such as Saudi Arabia, charge a so-called "Asian Premium" for shipments to Asian buyers, including India and Japan, as opposed to Europe.

Charles Schumer, the leader of Senate Democrats, recently linked $3-plus gasoline to Trump's decision to revive sanctions on Iran.

President Trump's most recent OPEC-related tweet comes just a week ahead of the OPEC and partners' meeting in Vienna, during which they will discuss reversing some of the cuts.

US production of oil came in at 10.9 million barrels per day last week, according to data released Wednesday by the US Energy Information Administration, up almost 17 percent from the year-ago level.

Various sources show that "considerable uncertainty as to world oil demand and non-OPEC supply prevails", OPEC said, leading to a wide range of estimates for the remainder of 2018.

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