Economy

Are gasoline prices in the United States really too high?

Are gasoline prices in the United States really too high?”

U.S. West Texas Intermediate and global benchmark Brent crude oil futures are trading lower early Thursday and for the week after President Trump turned up the heat on OPEC to reduce prices for crude.

Oil futures were climbing on Thursday, with US crude hovering at its highest in about 3-1/2 years as supply disruptions continue to support the market.

"The OPEC Monopoly must remember that gas prices are up & they are doing little to help", Trump wrote on his personal Twitter account.

In addition to pressing Saudi Arabia to pump as much as 2mmb/d more to an unprecedented 12mmb/d, an amount many doubt the Saudi can maintain for an extended period of time - think Tesla making Model 3s - the Trump administration has also been pushing countries to cut all imports of Iranian oil from November when the USA re-imposes sanctions against Tehran, after Trump withdrew from a 2015 nuclear deal agreed between Iran and six major powers. His latest was a reminder that the United States defends many OPEC members for "very little" money.

Since April, President Trump had criticized OPEC twice for manipulating oil prices, calling the cartel out for oil prices that are "too high".

A Reuters survey estimated USA crude oil stockpiles fell for a fourth consecutive week, by about 3.3 million barrels, in the week ended June 29.

Brent crude futures LCOc1 were at $77.82 per barrel, up 6 cents from their last close. Traders were looking for a draw of about 3.267 million barrels.

Oil will soon cost $100 per barrel due to supply disruptions caused by U.S. President Donald Trump, Iran's OPEC Governor told Reuters on Thursday, as he warned expectations that Saudi Arabia and Russian Federation would help bring down prices were in vain.

The announcement comes several days after S President Donald Trump claimed that the monarchy has agreed to raising the oil output to take on Iran and Venezuela.

The OPEC Basket price per barrel of crude oil is about $74.

"Given the extension of the Opec agreement to end of 2018, we expect oil sector growth to be limited this year, especially given the UAE's increasing compliance with the production cuts, which averaged 124 per cent in the first three months of 2018", ICAEW said.

Trump's abandonment of the Iran nuclear deal may have consequences for oil prices.

The early reaction to Trump's tweet was normal.

In post-settlement trade, prices extended gains after the American Petroleum Institute said crude stockpiles had fallen more than expected last week. "We will make the enemy understand that either all can use the Strait of Hormuz or no one", Jafari was quoted as saying by Tasnim news agency.

Iran has threatened to block oil exports through a key Gulf waterway in retaliation against any hostile U.S. action.



Like this

loading...
loading...

Latest


05 July 2018
Manchester United And Chelsea Set For Epic Swap Deal
Chelsea will sell Willian to United this summer - but only if they get Anthony Martial in return. I've not received any information about that.

05 July 2018
Warriors star Stephen Curry and wife Ayesha welcome baby Canon W
Feeling very blessed... and very sick. "Yippie! #curryfor3", Ayesha , 29, posted at the time, wearing a "Preggers" T-shirt. Canon is the couple's first boy, and one Im sure Steph can't wait to get on the bball court.

05 July 2018
Everton contact European giants over deal for World Cup star
Everton are one of the clubs linked with a move for Mina, along with Merseyside rivals Liverpool and Turkish side Fenerbache. Everton have reportedly launched a big-money move for Barcelona defender Yerry Mina .

05 July 2018
United States govt's NTIA recommends against licence for China Mobile
The advisory body, the National Telecommunications and Information Administration , is part of the Department of Commerce. The Trump administration is expected to bring into effect the first tranche of 25% tariffs on $34bn of Chinese goods.

05 July 2018
China's HNA Group chairman Wang Jian dies after fall in France
In this February 6, 2017, photo, a Chinese national flag flutters against the HNA Group office building in Beijing. HNA is the owner of Hainan Airlines, China's fourth-largest airline and the largest private airline in China.

05 July 2018
The shark dragged under water to feed its tourist
Representational image of a sandbar shark swimming around during a cageless shark dive tour in Haleiwa, Hawaii, Feb. 16, 2015. That's when one of the sharks clamped onto her finger and dragged her into the water.

05 July 2018
Arsenal ace ready to fire Gunners to Premier League glory
The Gunners said on Tuesday that Chambers signed a "long-term" contract but did not provide further details. The 30-year-old Greece global became the club's third signing after Stephan Lichtsteiner and Bernd Leno.

05 July 2018
Protester climbs Statue of Liberty base, forcing evacuation
One of its members, Leon Kirschner, said: "ICE has proved to be a threat to our liberty and way of life, and should be abolished". She climbed down about 25 feet to the statue's observation point, with another officer descending ahead of her.

05 July 2018
Sony Uploads Entire Film to YouTube Rather Than Its Trailer
Well, Sony really topped that and left nothing to the imagination when they published the entire 89-minute movie. But when he begins to develop empathy for his intended targets, he's confronted with a hard decision.

05 July 2018
US plans for dismantling North Korea nukes may face resistance
Kim had pledged to work toward the "complete denuclearisation" in return for security guarantees from the US. The official was not authorized to comment publicly on the matter and spoke on condition of anonymity.