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Trump rails against high oil prices

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WASHINGTON/DUBAI: US President Donald Trump accused OPEC on Friday of “artificially” boosting oil prices after a year-plus pact that has slashed global crude inventories, drawing rebukes from oil-producing countries as prices dipped following his remarks.


“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!” Trump wrote on Twitter.


It was unclear what triggered the tweet, Trump’s first mention of OPEC on social media during his term.


It came shortly after Saudi Arabian officials said they remained far from their goal in reducing a three-year global supply glut.


Earlier this week, three officials from the country, the world’s leading oil exporter, said they would be happy to see oil hit $80 or $100 a barrel.


This week, oil prices rose to levels not seen since late 2014, and the cartel is expected to restrain supply through the end of this year.


While the supply pact has boosted prices, analysts noted that Trump’s aggressive stances on Iran and Venezuela have also contributed to oil’s gains.


Several members of the Organization of the Petroleum Exporting Countries responded to the tweet, saying prices were not artificially inflated.


OPEC Secretary-General Mohammed Barkindo said the output cut agreement halted the collapse in global oil prices, and is “on course to restore stability on a sustainable basis in the interest of producers, consumers and the global economy.”


The group is slated to meet in June to decide next steps after reducing output since January 2017 along with other producers including Russia.


“We have a difficult time seeing how OPEC would in any way be swayed here in terms of changing course, in terms of policy,” said Michael Tran, commodity strategist at RBC.


OPEC’s landmark agreement with other producers cut production beginning in 2017.


Since then, oil prices have surged to 3-1/2 year highs, with US crude recently nearing $70 a barrel. The deal could potentially extend into 2019. — Reuters


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