Trump renews attack on OPEC ahead of group's production meeting

But the USA request and a Trump tweet in April that blamed OPEC for high oil prices has caused a split within the oil group, with some members accusing Saudi Arabia of being too eager to do Trump's bidding. "Not good!", the president tweeted on Wednesday morning.

In April, Trump also blasted OPEC on Twitter, accusing the group of "artificially" raising oil prices. "Statements by several parties suggest that action in terms of higher supply could be on the way", the agency added.

The agency sees domestic output averaging 10.79 million barrels a day this year, above the 1970 record of 9.6 million a day and higher than forecast in its May report, according to the EIA's Short-Term Energy Outlook released on Tuesday.

Oil prices are set, for the most part, by Saudi Arabia and, to a lesser extent, it's OPEC partners.

Russian Federation plans to propose to the OPEC/NOPEC allies next week that they reverse the group's production to the October 2016 levels-the baseline for the cuts of most pact participants when they had pumped as much oil as they could to blunt the cuts' impact later.

Trump's complaints about OPEC come amid expectations of a more costly U.S. summer driving season.

On Wednesday, the national average for a gallon of regular stood at $2.91, up 25 percent from a year ago, according to the AAA auto club.

"Over time it would have happened anyway because of the cutbacks in (drilling) investment, but definitely OPEC's cut in production helped speed the reduction of the oil glut", said Phil Flynn, an oil analyst for The Price Futures Group.


Since early 2017, OPEC and other oil-producing countries have agreed to reduce supply in a bid to bolster oil prices.

Russia, alongside Saudi Arabia, has the highest spare capacity to boost production.

But Matt Smith, director of research at ClipperData, said Trump himself is responsible for some of the pressure due to the decision to exit the Iran deal.

The talks come within less than two months of oil minister Dharmendra Pradhan proposing an alliance between Indian and Chinese staterun oil companies for a greater say in the market. "The real catalyst for the recent rise in prices is the sanctions on Iran". Higher interest rates strengthen the dollar, increasing the cost of commodities including oil for buyers using other currencies.

This could lead to a supply gap in crude late next year if OPEC can't make up for lost production, the IEA said in its monthly report Wednesday.

OPEC itself spotlighted United States output in its own monthly report on Tuesday, citing the growth of non-OPEC supply as one of several question marks hanging over the situation.

The IEA report comes a day after OPEC warned of "considerable uncertainty as to world oil demand".

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