Trump's tweets have added $10 to oil prices - OPEC

Crude Oil

Crude Oil

"We are also working with oil market participants, including producers and consumers, to ensure market stability".

The U.S. decision set up the possibility of new sanctions, which have little support in Europe.

Oil prices raised this week after Washington stated it would offer no extensions or waivers to Iran's oil buyers when sanctions return in November.

The Trump administration has on June 26 asked worldwide community to cut all imports of Iranian oil before November 4, when the U.S. re-imposes sanctions against that country.

Kazempour Ardebili said Trump was trying to intensify tensions between Iran and Saudi Arabia and he called on the United States to join world powers in a meeting with Iran in Vienna on Friday. "But there is no conviction about the next direction for prices yet". Anyone buying Iranian crude by November can expect to be shut out of the USA banking system.

West Texas Intermediate crude for August delivery jumped $1.9 to $75.13 a barrel at 9:41 am. on the New York Mercantile Exchange.

“Recurring salvos in the trade war and falling asset prices raise the question of how much tariffs could damage the global economy, ” USA bank JPMorgan said.

Brent crude futures were at $77.99 a barrel at 1345 GMT, down 25 cents.

The black gold broke its Asian consolidation range and fell sharply in the European session, largely on the back of resurgent US dollar demand across the board, as escalating US-Sino trade tensions continue to underpin the buck.

Yuan-denominated futures were little changed at 497.6 yuan a barrel on the Shanghai International Energy Exchange, after losing 1.4 per cent Wednesday.

US production C-OUT-T-EIA has soared 30 percent in the past two years, to 10.9 million bpd, meaning the world's three biggest oil producers now churn out nearly 11 million bpd each, meeting a third of global oil demand. Add to that, the loss of 350,000 barrels a day from Canada after a transformer blew up at Syncrude Canada's oil-sands upgrader in Alberta and further declines in Venezuela, and it is easy to see another million barrels a day of outages.

Trump's interventions with tweets "unsettle" the market and appear to have pushed prices up, Standard Chartered Plc energy analyst Emily Ashford and head of commodities research Paul Horsnell wrote in a note on Tuesday (July 3). This must be a two way street.

President Donald Trump's sustained bid to disrupt Iran's petroleum exports could soon help to push oil prices above $90 a barrel, analysts told CNBC on Thursday.

OPEC-member Iran, however, has warned it would not accept other producers reaping the benefits by taking its market share.

On Monday, Hook said, "Our policy is to get to zero as soon as possible"- a subtle shift that is likely to reassure markets. Canadian oil prices are poised to continue their slow, steady march upward next year as shipping bottlenecks ease and US refiners look north to fill the gap created by decreasing output from Venezuela, according to Deloitte.

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