Oil falls towards $77 a barrel due to higher Saudi production

Oil falls towards $77 a barrel due to higher Saudi production

Recent price rises have also been spurred by a USA announcement that it plans to re-introduce sanctions against Iran from November, targeting oil exports.

Following his comments, oil prices fell on July 5.

Brent crude futures were up 11 cents $78.35 a barrel.

USA president, Trump in a series of tweets, is reported to have called for Saudi officials, which represent the most influential oil producer in OPEC, to help pump more crude and lower prices.

USA crude futures were down 58 cents at $73.56 per barrel by 12:00 p.m. EDT (1600 GMT), still in sight of Tuesday's 3-1/2-year high above $75. If anything, they are driving prices higher as the US defends many of their members for very little $'s. "REDUCE PRICING NOW!" Trump tweeted.

"Every day, Mr. Trump has a new message or remark that causes concern in the market, or he gives OPEC members orders that are very insulting", or demands other countries increase their production, Zanganeh said.

"With contentious midterm U.S. elections looming, the President continues to strong-arm Saudi Arabia to increase oil supplies which, at least for now, is containing price action below WTI $75 per barrel", said Stephen Innes, Head of Trading for Asia/Pacific at futures brokerage OANDA.

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Output cuts by OPEC and allies since January 2017 have reduced a crude glut.

Saudi Arabia has wanted to sell shares in Aramco to bring in foreign investment to diversify its economy, but legal concerns about listing in places like London or NY have presented complications.

Trump has repeatedly called on the oil cartel to reduce prices.

OPEC and Russian Federation announced in June they were willing to raise output to address concerns of emerging supply shortages due to unplanned disruptions from Venezuela to Libya, and likely also to replace a potential fall in Iranian supplies due to USA sanctions.

OPEC and other producers including Russian Federation agreed last month to boost output by around a million barrels a day, reversing course after supply cuts that cleared a global glut and boosted prices.

An Iranian Revolutionary Guards commander, meanwhile, said Wednesday Tehran might block oil shipments through the Strait of Hormuz, a major route for transporting crude in the Arabian Gulf.

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