President Donald Trump accused members of the OPEC oil cartel of "ripping off" the world on Tuesday as he called for a lowering of fuel prices.
"The United States stands ready to export our abundant affordable supply of oil, clean coal, and natural gas," Trump told the United Nations General Assembly.
"OPEC and OPEC nations are, as usual, ripping off the rest of the world, and I don't like it. Nobody should like it."
Meanwhile, crude oil prices shot to a fresh four-year high on Tuesday, rallying Trump spoke heatedly about Iran ahead of U.S. sanctions on the country’s crude exports and bolstered by the apparent reluctance of OPEC and Russia to raise output to offset the potential hit to global supply.
Trump said in a speech before the United Nations that the United States will put more sanctions on Iran following oil sanctions that go into effect in Nov. 4.
The sanctions are expected to have an immediate impact on OPEC’s third largest producer’s exports.
“Iran will lose sizeable export volumes, and given OPEC+ reluctance to raise output, the market is ill-equipped to fill the supply gap,” Harry Tchilinguirian, global head of commodity markets strategy at French bank BNP Paribas, told the Reuters Global Oil Forum.
Brent crude futures were up $1.00 a barrel at $82.20 by 11:13 a.m. EDT (1513 GMT), having touched a session peak of $82.55, the highest price since Nov. 10, 2014.
The global benchmark is on course for its fifth consecutive quarterly increase, the longest stretch of gains since early 2007, when a six-quarter run led to a record high of $147.50 a barrel.
U.S. crude futures were up 25 cents at $72.33 a barrel, close to their highest since mid-July.
The grade turned negative briefly during Trump’s U.N. speech, where he accused OPEC nations of “ripping off the world” and said he wants the group to stop raising prices.
The so-called “OPEC+” group, which includes the likes of Russia, Oman and Kazakhstan, met at the weekend to discuss a possible increase in crude output, but the upshot of the gathering was that the group was in no rush to do so.
Mohammad Barkindo, secretary general of the Organization of the Petroleum Exporting Countries (OPEC), said in Madrid on Tuesday that it is important for OPEC and its partners, including Russia, to cooperate to ensure they do not “fall from one crisis to another”.
The International Energy Agency forecast strong oil demand growth of 1.4 million barrels per day (bpd) this year and 1.5 million bpd in 2019, and said in its most recent report that the market was tightening.
“After the weekend’s meeting, the voices of those who foresee $100 a barrel and compare the current backdrop to the 2007/2008 bull run are getting louder,” said PVM Oil Associates strategist Tamas Varga.
“Undoubtedly the oil market is expected to be tight in coming months and, if OPEC’s own numbers are to be believed, global oil inventories are to fall during the remainder of the year.”
© 2023 Thomson/Reuters. All rights reserved.