US Reportedly Sought Saudi Backing Before Trump Quit Iran Nuke Deal

US Reportedly Sought Saudi Backing Before Trump Quit Iran Nuke Deal

Crude oil prices fell yesterday with the global benchmark, Brent crude heading towards its lowest finish in about one month after a report revealed a surprise weekly climb in the United States' domestic crude inventories.

Iran's OPEC governor, Hossein Kazempour Ardebili, was responding to news that the USA government had unofficially asked Saudi Arabia and some other OPEC producers to raise output.

Brent crude futures fell 45 cents to $76.87 a barrel by 13:33 GMT.

In North America, however, surging U.S. output has pressured WTI crude futures.

OPEC will meet in Vienna on June 22 to decide whether the group and non-OPEC producers, including Russian Federation, should raise output to make up for any supply shortfall from Iran and Venezuela. The increase shows that lack of supply that is coming from OPEC crude relative to supply from USA production.

"Nevertheless, growing prospects for an increase in production from the "OPEC Plus" and rising oil output from the USA will cap price gains".

Algerian Energy Minister Mustapha Guitouni said on state radio: "What matters to us is that there is a balance between supply and demand to ensure the stability of the oil markets".

In a rare request, the U.S. government has quietly asked Saudi Arabia and some other Opec members to boost crude production after retail gasoline prices surged to their highest in more than three years and President Donald Trump publicly complained about the group's policy and rising oil prices on Twitter.

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True, US sanctions will hit Iran oil exports but, like the loss of Venezuela output, this will be offset by higher production in other oil provinces.

According to the EIA, US crude inventory saw a build of 2.072 million barrels to 436.584 million barrels for the week ended June 1.

The group meets in Vienna on June 22 to discuss its supply policy.

The OPEC basket was quoted on Wednesday at 73.05 dollars, a rise of 26 cents compared to that of the end of Tuesday.

Oil prices surged to around $80 a barrel last month from under $30 a barrel in early 2016 after OPEC and non-OPEC producers struck a deal to cut output, by 1.8 million bpd.

Analysts insist oil prices are heading higher.

The European Commission announced yesterday it endorsed a decision to impose duties on imported USA goods in response to US President Donald Trump's move on aluminum and steel tariffs.