Economy

What Is OPEC? Trump Attacks Oil Price 'Monopoly'

What Is OPEC? Trump Attacks Oil Price 'Monopoly'

This must be a two way street.

I've been over this on countless occasions since the President first implored OPEC to engineer lower prices back in April.

Investors had questions as "to whether Saudi Arabia and Russian Federation could or would really be able to ramp production quickly enough", said Rob Haworth, who helps oversee US$151 billion at U.S. Bank Wealth Management in Seattle. Perhaps Trump will ask Putin at their upcoming meeting to increase production. US crude futures CLc1 were up 19 cents at $74.33 a barrel, within sight of Tuesday's 3-1/2-year high above $75 a barrel.

This is while world oil prices have climbed higher as the Trump administration has pressured United States allies to end all purchases of oil from Iran. Its recent peak was just above $91 in early July 2014 before the price crashed to a nadir of around $36 in January 2016, subsequently recovering to its current level. Long story short, he's anxious that higher prices at the pump will eat away at the savings he imagines are accruing to USA consumers as a result of the tax cuts.

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

Trump's abandonment of the Iran nuclear deal may have consequences for oil prices. Despite that key member Saudi Arabia is affirming that the group and its allies will boost output, Goldman Sachs Group Inc. warned that oil is likely to lead a new rally as the market faces significant supply risks from Venezuela to Iran.

More news: Emotional Ronaldo thanks Portugal fans amid future speculation

Outside North America, looming USA sanctions against major oil exporter Iran were the focus of attention. Iran, however, said it would be tough to erase its oil completely from the market by November, when USA sanctions snap back into place.

But Tehran has threatened to take drastic action on the oil supply in retaliation against Trump's attempt to curb its exports.

"If they want to stop Iranian oil exports, we will not allow any oil shipment to pass through the Strait of Hormuz", Ismail Kowsari, an Iranian Revolutionary Guards commander, told Iran's Young Journalists Club, Reuters reported. The strait spans Iran, Iraq, Qatar, Bahrain, the UAE and Oman.

On Monday, Trump took another swipe at OPEC, accusing the oil organization of not helping the U.S. to reduce domestic gasoline prices.

Iranian OPEC Governor Hossein Kazempour Ardebili said on Thursday that Trump had raised oil prices through his tweets.