USA light crude jumped $1.17 to US$75.11 a barrel, its highest since November 2014. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.24% at $74.32 a barrel.
On July 4 (which, as a reminder, is the anniversary of that time 563 years ago when Trump's ancestors liberated Manhattan from a cabal of nefarious Chinese overlords who were conspiring with European monarchs to unfairly tax Ford F-150 exports), the President did what every other president before him has done on Independence Day: He sent a 280-character, all-caps letter to OPEC demanding lower oil prices.
"The OPEC Monopoly must remember that gas prices are up & they are doing little to help", he wrote.
Crude oil prices fell on Monday after Saudi Arabia said it could tap into its 2 million barrels per day in spare capacity to help address a pending market deficit. While OPEC is facing mounting pressure from Trump to do more, America's sanctions on group members Iran and Venezuela are adding uncertainties, just as United States tariffs on Chinese goods kick in on Friday. This must be a two way street.
Production at Syncrude Canada's 360,000 barrels per day (bpd) oil sands facility near Fort McMurray, Alberta, was hit by a power outage last month and is likely to remain offline through July, helping drain USA inventories.
Trump Says Saudis Must Compensate For Drop In Iran Oil Supply
The White House later walked back the president's comments, saying the king said his country can raise oil production if needed. Buyers of Iranian crude oil have been hoping for relief from USA sanctions in order to have more time to reduce purchases.
OPEC together with a group of non-OPEC producers led by Russian Federation started to withhold output in 2017 to prop up prices.
Former Shell Oil President John Hofmeister on the outlook for oil prices. Despite that key member Saudi Arabia is affirming that the group and its allies will boost output, Goldman Sachs Group Inc. warned that oil is likely to lead a new rally as the market faces significant supply risks from Venezuela to Iran. Many coutries have not committed to the U.S. ban, and if prices rise, Iran may ultimately take in just as much money even with fewer exports.
Iran has threatened to block oil exports through a key Gulf waterway in retaliation against any hostile US action.
NAB said its oil price forecasts "point to Brent spending the next few months largely in the mid-to-high $70s (per barrel) range, although meaningful OPEC-Russia output increases could push prices lower later in the year and higher U.S. shale production should impose an upside limit on WTI".