Oil prices rise amid drop in U.S. stockpiles, supply worries

Oil prices fall amid surprise growth in U.S. crude stocks

Oil prices fall amid surprise growth in U.S. crude stocks

USA president Donald Trump tweeted that OPEC needs to keep crude prices lower because of the military protection the US provides for the region.

Trump said, adding that countries in the Middle East would not be "safe for very long" without protection from the United States. This comes after the June 22 agreement between the OPEC (Organization of the Petroleum Exporting Countries) and Russian Federation for increasing the production and reducing the prices.

USA oil futures surged almost 2 percent on Wednesday as they were bolstered by a fifth weekly crude inventory drawdown and strong domestic gasoline demand amid ongoing global supply concerns over US sanctions on Iran that come into force in November.

The U.S. president is keen to ensure there is no impact on domestic fuel prices ahead of the midterm elections, Financial Times reported. Prices hit a two-month high Wednesday as Brent crude - the world's most closely followed gauge - rose above $79 a barrel. The commercial crude oil inventories excluding SPR is 16.6 percent below the levels of the same week a year ago.

For this year's April-to-September driving season, the Energy Information Administration expects United States petrol prices to be up 19% from a year ago, mostly because of expectations for higher crude-oil prices.

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Gasoline stocks fell by 1.7 million barrels, compared with analysts' expectations in a Reuters poll for a 104,000-barrel drop. The oil prices were increased to its highest level until this year. Iran's oil production is likely to drop as US sanctions kick in beginning November. Specifically, helping to underpin prices is another drawdown in US inventories and strong USA gasoline demand.

In staying away from the meeting, Zanganeh could complicate plans by OPEC to institutionalize its partnership with Russian Federation and the other non-OPEC participants in its supply accord.

Consultancy JBC Energy said in a note "The market may have taken this as a sign that supplies may not go up much in response to further declines in Iranian crude exports". His "peak oil" theory was accepted by many, and has been used by green energy groups to bolster their arguments for policy change.

"Also, Iranian oil minister Bijan Zanganeh on Thursday said he would veto any OPEC deal that imperils Tehran's oil market share, complicating the organisation's talks with Russian Federation and other partners to institutionalise their supply management accord beyond this year".

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