US Oil Production Jumps, Eyes 11 Million; Trump Hits OPEC On Prices

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"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.

US President Donald Trump says oil prices are too high and blames OPEC.

The ideas, discussed informally among ministers and delegates ahead of next week's meeting in Vienna, comes as Riyadh tries to rally support for a production increase in the face of staunch opposition from Iran, Venezuela and Iraq, and pressure from Washington, the same people said, asking not to be named discussing private conversations. The two countries together accounted for nearly 17% of world oil consumption previous year, making them ideally suited to take on the oil exporting cartel.

OPEC, together with Russian Federation, will officially meet in Vienna on June 22 to discuss its production policy, U.S. bank Morgan Stanley said OPEC and its partners had "largely achieved their stated objective of rebalancing the oil market".

The 14 oil-producing nations in OPEC - Saudi Arabia, Iran, Iraq, Kuwait and Venezuela among them - produce about 40 percent of the world's oil, but about 60 percent of the oil traded on worldwide markets.

Brent crude futures LCOc1 were at $76.47 per barrel by 0656 GMT, down 27 cents, or 0.4 percent, from their last close. Meanwhile, U.S. crude production rose to 10.9 million barrels a day, topping 10 million a day every week since early February. At the 16th IEF ministerial meet in April this year, India and China, which together accounted for 17 per cent of world oil consumption last year, agreed to look for ways to leverage the combined size of their imports for a better bargain from West Asian crude producers.

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Trump sparked the latest back-and-forth when he renewed his attack on OPEC in a tweet that said oil prices are too high and that the cartel was "at it again".

There are now fears that prices could rise steeply if supplies are disrupted from OPEC members Venezuela and Iran.

International Energy Agency (IEA) sees India and China fuelling half of global demand growth in the next five years, with India driving incremental demand growth through the next two decades. "My opinion is the world of energy requires longer periods of stability, both on the oil price side and in the relationship between members and non-members of OPEC, before any major decisions on oil cuts can be taken", she said. OPEC has yet to set new production levels beyond that, but the cartel's oil ministers are meeting again next week in Vienna. Prices have risen around 60 percent over the previous year.

"Over time it would have happened anyway because of the cutbacks in (drilling) investment, but definitely OPEC's cut in production helped speed the reduction of the oil glut", said Phil Flynn, an oil analyst for The Price Futures Group.

"OPEC has the lowest spare capacity ever right now", said fund manager Pierre Andurand, in a tweeted response to Trump.

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