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Oil Remains Steady Despite Trump’s Demands to OPEC and Iranian Threats

July 5, 2018 at 13:40 by Matt Jackson

US President, Donald Trump, has continued his Twitter war of words with OPEC, telling them to “REDUCE PRICES NOW”. Iranian OPEC boss, Hossein Kazempour Ardebili has called the President out, claiming that his tweets have actually added $10 to the price of oil per barrel. Meanwhile, Iranian officials, who are angry at Trump for withdrawing from the Iranian nuclear deal and subsequently forcing other nations to stop buying oil from the country, have said that they could block access to the Strait of Hormuz. Despite all of this, however, oil prices have remained relatively stable as the market awaits weekly data from the Energy Information Administration.

Trump has come under fire for his tendency to use Twitter to air frustrations with world leaders, the media, and opponents. As part of this initiative, Trump has previously attacked OPEC by claiming that they are artificially increasing prices, and he has taken to his favourite social network to once again slam the oil producing cartel. He tweeted:

Trump’s methods have drawn ire from a number of OPEC nations, but especially from Iran, and some believe that he is making these statements in a bid to try and cause a divide between the nations, eventually leading to the breaking up of the cartel. This is a view shared by Iranian officials, who have retorted by saying “your tweets have increased the prices by at least $10. Please stop this method.”

Iran are especially angered by Trump’s actions, because part of the reason that he is being forced to call for greater output from the likes of Saudi Arabia is the declining level of output reaching the market from Iran after the President reiterated his intention to levy countries that continued to buy oil from Iran. Despite these threats, a number of countries, including China, have said that they intend to continue buying Iranian oil.

WTI crude prices remained flat at $74.14 while Brent crude prices fell just 0.05% to $78.20 at 14:30 GMT.

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