Nigeria suffers biggest oil output decline in OPEC

Nigeria suffers biggest oil output decline in OPEC

Nigeria suffers biggest oil output decline in OPEC

For the last month, the oil price has successively marked lower intraday highs and lows, indicating that traders and investors are not quite as confident in the outlook for the supply/demand balance, especially given the steep rise in USA crude production and the splintering within OPEC.

At least three OPEC members disagree with Saudi Arabia and Russian Federation on the need to pump more oil, OPEC sources said, complicating any official decision to boost supply just as consuming nations are warning of a shortage. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High!

Trump may hope his comments will put pressure on USA allies within OPEC to raise their oil production sooner rather than later, staving off any further increase in prices and easing the recent hit to American consumers' pockets at the gas pumps.

Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma, U.S., in this March 24, 2016. "Procuring oil at the cheapest price is vital for the two energy hungry Asian consumers".

Oil prices fell on Wednesday, pulled down by rising supplies in the U.S. and the expectation that voluntary output cuts led by producer cartel Opec could be loosened.

After maintaining a steady decline in 2015-16, oil prices have begun to rise since the middle of the past year and the increase has picked up pace in the last couple of months.

Trump sent out his tweet hours after returning to Washington from a summit with North Korean leader Kim Jong Un in Singapore and it was not immediately clear what prompted his comment.

Yet there's resistance from inside the cartel as three of its founding members - Iran, Iraq and Venezuela - argue that OPEC shouldn't submit to external pressure.

Brent crude, the global oil benchmark, settled down 1% to $75.94 a barrel on London's Intercontinental Exchange.

Jason Bordoff, a Columbia University professor and former energy adviser to President Barack Obama, said politicians always fret when gasoline prices rise before a big election.

USA oil benchmark West Texas Intermediate for July delivery finished up 28 cents at $66.64 a barrel on Wednesday, while European benchmark North Sea Brent oil gained $1.06 to $76.74 a barrel.

USA crude output has risen nearly 30 percent in the last two years to a record high of 10.9 million barrels per day.

The output failures in Nigeria combined with production deficits in other OPEC members to cut the group's May production down to a 13-month low of 31.90 mbd, Platts figures indicated.

"Expect more of the same whippy markets driven by rumours and innuendo ahead of June 22 Vienna OPEC meeting", predicted OANDA analyst Stephen Innes.

Barclays said in a note that it expected the group to increase production by 700,000 to 800,000 bpd. Russia's production was 11.1 million barrels a day at the beginning of June, exceeding its quota, according to sources familiar with the matter.

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