Trump’s oil tweet puts OPEC in its place

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Consumers of oil have got a breather from the soaring prices. US President Donald Trump has come down heavily on the Organization of Petroleum Exporting Countries (OPEC) for arbitrarily increasing oil prices. Trump took to Twitter to express his disapproval of the same.

“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,” wrote Trump in his social media tweet on April 20, 2018.

Trump’s tweet came soon after Saudi government officials stated that they were way off their mark in reaching their desired target of reducing a 3 year global supply glut. Some key officials from the Saudi government told Reuters that the Saudi government would be happy if oil prices reach $80 or $100 per barrel.

As recently as this week oil prices had rose to levels which were last seen in 2014. It is expected that the cartel will continue to restrain supply throughout this year.

Members of OPEC reacted sharply to Trump’s tweet telling that oil prices weren’t artificially inflated. OPEC members are expected to meet in June to discuss the further course of action on reducing the glut in international market with producers from other nations including those from Russia.

Trump didn’t send out any further details on what action his administration might take on oil and on OPEC. White House did not respond to any comments sought by the media.

This week, prices of crude futures Brent and U.S. West Texas Intermediate (WTI) sky-rocketed with Brent trading at $74.75 and U.S. crude at $69.56 per barrel due to tight supply and high demand.

As a result average U.S. prices for gasoline have hit $2.75 per gallon upwards by 30 cents as against last year.

It is interesting to note that prices fell marginally following Trump’s tweet. Brent futures was trading at $73.04 per barrel whereas WTI futures also reduced by 61 cents at $67.68 a barrel.