US President Donald Trump yet again blamed OPEC for high oil prices despite crude futures coming down from a high of three-and-a-half years.”Oil prices are too high, OPEC is at it again. Not good!” Trump tweeted. There were reports that Saudi Arabia has been asked to manage the crude market by the US administration. The US crude oil futures were trading near $66 a barrel on Wednesday and have declined from a multi-year high of nearly $73 a barrel on May 22.
Earlier in April too, Donald Trump slammed OPEC for “artificially” keeping high oil prices.“Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted,” Donald Trump said in a tweet after oil prices touched a four-year high then.
On reports about the Trump administration having been asked Saudi Arabia (OPEC’s biggest producer) to manage crude market and to start pumping more as renewed US sanctions on Iran begin to hit the country’s exports.
However, then Saudi Arabia and UAE refuted Donald Trump’s claim and said that “there’s no such thing as artificial prices and that current market levels reflect geopolitics”.
OPEC and non-members countries led by Russia are cutting their oil production to increase prices in the international market. They decided to extend cuts in oil output until the end of 2018 from March 2018 earlier, as they battle a global glut of crude after seeing prices halve and revenues drop sharply in the past three years.