President Donald Trump again blew up OPEC on an early morning tweet that sent oil prices over 1 percent.
WTI crude futures fell more than 1 percent in sudden motion after the Trump's tweet. International Brent Crude futures were $ 66.26 per barrel at 7:51
Trump has not tweeted about OPEC since the beginning of December, just before the producer group and 10 allied nations led by Russia believed his calls to continue pumping in high volumes The group instead cut 1.2 million barrels from the market
The so-called OPEC + alliance reached the agreement after oil prices fell more than 40 percent in the last quarter of 2018. The group first began to limit production in 2017 to end a punitive downturn, but lifted the caps in June when the oil price hit 3-1 / 2 years high compared to Trump's sanctions against Iran, OPEC's third largest producer on it time.
Especially the manufacturers, and Saudi Arabia, hiked production through November, when Trump surprised them by allowing some of Iran's largest customers to continue importing their oil as sanctions broke back into place. The move contributed to the sharp decline in prices.
Top exporter Saudi Arabia has now turned sharp course. After production has increased to a record 11.1 million bpd in November, it has reduced production to 10.2 million bpd. Saudi Energy Minister Khalid al-Falih says the Saudis will cut further and pump to 9.8 million bpd next month.
In all of his tweets on OPEC last year, Trump did not express a particular price preference, but earlier he said the oil should not sell for more than $ 40 a barrel and should preferably trade at $ 25. These price levels would conclude many US oil producers and make it difficult for even the healthiest drillers to create a profit in the shale areas driving the boom in US production.
Saudi Arabia can produce oil at a lower price than US drilling machines, but the realm needs higher oil prices to balance its budget and pay for generous social programs that support stability in the country.