As oil prices surged to a four-year high, US President Donald Trump joined Prime Minister Narendra Modi in criticising the Organization of the Petroleum Exporting Countries (OPEC) for 'artificially' high oil prices.
A lot is happening in the oil world. As oil prices surged to a four-year high, US President Donald Trump joined Prime Minister Narendra Modi in criticising the Organization of the Petroleum Exporting Countries (OPEC) for ‘artificially’ high oil prices. In an early morning tweet (Washington time), Donald Trump slammed the OPEC, saying that record amounts of oil are “all over the place” and ships are “fully-loaded” at sea. He said that oil prices, which are artificially very high, is not good and will not be accepted.
Last week, Narendra Modi also slammed OPEC, although subtly, and said that efforts to artificially distort prices are self-defeating, and a global consensus must be built for responsible pricing to provide affordable energy to all. The Prime Minister Narendra Modi made the statement at International Energy Forum (IEF) Ministerial meeting in New Delhi, where representatives of OPEC members Saudi Arabia, Iran and Qatar were present in the audience. In fact, India and China were reported to have not only discuss the issue but to deal with the issue together.
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 J. Trump (@realDonaldTrump) April 20, 2018
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. A report by Reuters said that Saudi wants crude oil price to hit $100 a barrel. The producers are cutting supply by about 1.8 million barrels per day (bpd) in an effort to boost the price.