Soon after Donald Trump slammed the Organization of the Petroleum Exporting Countries (OPEC) for “artificially” high oil prices, it crashed erasing gains. Brent crude oil price fell about 69 cents at the time of the tweet, before trading down 0.7% at $73.29 a barrel and US WTI erased gains to trade 0.6$ lower at $67.90 a barrel, Bloomberg reported. Donald Trump, in an early morning (Washington time) tweet, said that he will not accept OPEC’s artificially 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 earlier on Friday.
However, 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”. Oil price after a brief fall in February started rallying and on Friday touched a four year high.
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.