Oil jumps, then pares gains as Trump pressures OPEC again

Saudi energy minister rips Trump tweet: 'I do not influence oil prices'

Saudi energy minister rips Trump tweet: 'I do not influence oil prices'

A meeting between oil producing countries on Sunday decided not to alter supply to the global market, after calls by US President Donald Trump for an immediate hike in output to reduce prices. But Falih - attending a meeting of oil producers in Algiers - left the way open to a future production hike, as supplies tighten due to the USA imposing sanctions on Iranian oil from November 2018.

Higher gasoline prices for US consumers could create a political headache for Trump before November mid-term congressional elections.

The Committee also expressed its satisfaction regarding the current oil market outlook, with an overall healthy balance between supply and demand.

On Friday, a source familiar with the discussions told Reuters OPEC and its allies led by Russian Federation were considering the possibility of raising crude supplies by a further 500,000 barrels per day (bpd) as US sanctions on OPEC's third-largest producer, Iran, bite into Tehran's exports. "The market is well-supplied", Saudi Energy Minister Khalid Al-Falih said after the OPEC meeting in Algeria over the weekend.

"It's hard to believe that the Saudis won't answer the call at some point, especially if prices tick much higher", said John Kilduff, a partner at Again Capital in NY.

Brent oil maintains firm tone on Tuesday and hit new four-year high at $82.18, in extension of strong rally on Monday. But other market players say Brent's rise leaves oil prices vulnerable to a swift pullback, given concerns about global economic growth and OPEC's own desire to keep prices below $80.

Notably, the bank increased its estimate of supply losses from Iran 1 million barrels per day (mb/d), up from 500,000 bpd previously.

Man City boss Guardiola: Thank-you Aguero
I don't know if he will finish his career here, I don't what's happening in three years, but it's nice to count on him". "I appreciate it a lot so thank you and I'm so happy they can extend their contracts and stay 10 years in the club".

Fund managers boosted their net position in Brent (+28 million barrels) and US gasoline (+4 million) but cut positions in USA heating oil (-4 million), European gasoil (-9 million) and WTI (-16 million barrels).

However, while much was made of the cartel's decision being a rejection of Trump insisting that output should increase in order to lower prices, it seemed instead to be in line with the perception that - again, contrary to fears of a tightening market due to production shortfalls in Iran and Venezuela - that all is fine with the global market.

"They would not be safe for very long without us, and yet they continue to push for higher and higher oil prices!"

When Trump in May announced plans to reimpose sanctions on Iran's oil exports, the market estimated a cut of about 300,000 to 700,000 barrels a day, said Trafigura Group co-head of oil trading Ben Luckock.

Mihir Kapadia, of Sun Global Investments, said: "With Brent crude already above $80.50 per barrel, we can expect the oil markets to close at early $90s by the end of the year and touch $100s by March 2019".

The official further said the United States could tap into its own strategic reserves to compensate for the missing Iranian oil volumes.

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