Oil falls as Trump urges OPEC to reduce prices

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The Trump-Saudi campaign to calm oil markets will by tested severely in the coming months as sanctions bite deeper into Iran's exports, risking even higher crude prices.

"This must be a two way street", his latest statement read.

OPEC members agreed June 23 to increase crude oil output by pumping 1 million barrels more daily, but it is still unclear how much of the oil produced would ease off prices in a period-the northern hemisphere's summer-generally associated with high oil demand. Rising gasoline prices could create a political headache for Trump before the November mid-term congressional elections by offsetting Republican claims that his tax cuts and rollbacks of federal regulations have helped boost the USA economy.

Oil prices fell on Thursday after U.S. President Donald Trump sent a strident tweet demanding that OPEC cut prices for crude.

Trump in an earlier tweet and in an interview on Fox News last Sunday said he wanted oil exporters to provide an additional 2 million barrels a day of production. "We expect you to be more polite".

Recent price rises have also been spurred by a US announcement that it plans to re-introduce sanctions against Iran from November, which will also target its oil industry.

"The responsibility of paying unnecessary prices for oil by all consumers of the whole world, especially in USA gas stations, is exclusively upon [Trump's] shoulders and the price of over $100 per barrel is yet to come".

Also on Thursday, data showed United States crude stockpiles rose unexpectedly last week by 1.2 million barrels.

U.S. crude futures were down 58c at $73.56 a barrel by 4pm GMT, still in sight of Tuesday's three-and-a-half-year high above $75.

"The responsibility of paying unnecessary prices for oil by all consumers of the whole world, especially in USA gas stations, is exclusively upon your (Trump's) shoulders and the price of over $100 per barrel is yet to come", he said.

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Analyst says the difference between Brent crude and U.

Trump has repeatedly called on the oil cartel to reduce prices.

Iran in the past has said some OPEC members are tools of the Trump administration.

"If Trump continues to believe that OPEC are not doing enough, we would not rule out an SPR (Strategic Petroleum Reserve) release from the USA, or possibly even export restrictions on petroleum products", ING said in a note.

While trade concerns may be partly responsible for the decline, the industry was surprised to learn this week that oil stockpiles in the USA are getting larger, not smaller.

"OPEC's biggest oil producer at around 8-10 million bbl/day - has now been signalling for some time that it will likely make more oil available, the forthcoming float of state-owned Saudi Aramco is likely to remain a high priority".

US crude stockpiles are forecast to have declined 5 million barrels last week, according to a Bloomberg survey ahead of government data to be released on Thursday.

Brent crude futures were at USD77.70 per barrel at 0250 GMT, down 54 cents, or 0.7 percent, from their last close.

The UAE on Tuesday said it will increase production by 0.2 million barrels per day to 3.5mbpd by the end of 2018 to help meet any oil shortage and will also adhere to the conformity level.

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