As oil price crept to its highest level since 2014 earlier this week, President Trump has taken an aim at OPEC in his latest tweetstorm. WTI is currently trading at $67.9 per barrel and Brent at $%.4 per barrel premium to WTI.
OPEC producers along with non-OPEC participants led by Russia agreed to a production cut agreement of 1.76 million barrels per day back in November 2016 and have been implementing it since 2017, which has contributed to the higher oil price by reducing the supply imbalance in the oil market. Saudi Arabia indicated earlier this week that they are aiming for $100 per barrel crude price and the country’s energy minister said that the world has enough capacity to absorb higher oil price.
Trump tweeted, blasting OPEC, “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!”
At this point, it is not clear whether this is another of his angry rant or he plans to back it up with some actions to reduce prices.
