Iran sees oil price hitting $100 amid supply disruptions

Outage in Alberta's oilsands is pushing U.S. crude to a four-year high

Outage in Alberta's oilsands is pushing U.S. crude to a four-year high

On Wednesday, US President Donald Trump accused oil cartel Opec of driving up fuel prices.

On Wednesday, the United States president again accused the OPEC of driving fuel prices higher and urged USA allies such as Saudi Arabia to pump more.

However, there's no question that with US gasoline prices climbing above $3 per gallon in many states, Trump has come under increasing pressure to come up with a solution, and as such, his liaison with Saudi Arabia, in which the kingdom has agreed to pump all-out to compensate for not only Iranian export losses but those of Venezuela, is the strategy - although unsurprisingly many western analysts doubt the Saudis can pump the required amount in so short a time.

Brent oil rose on Wednesday, driven higher by a threat from an Iranian commander and a drop in USA crude inventories for the second week in a row.

OPEC agreed with Russian Federation and other oil-producing allies last month to raise output from July, with Saudi Arabia pledging a "measurable" supply boost but giving no specific numbers.

On Wednesday, the president took to Twitter to say OPEC wasn't doing enough to address higher prices.

President Trump has never been shy about tweeting on worldwide affairs, often putting his foot in his mouth. Trump's decision in May to pull out of the United Nations -backed nuclear agreement with Iran, meanwhile, means sanctions on the Iranian energy sector snap back into place in November.

"If Trump continues to believe that OPEC are not doing enough, we would not rule out an SPR (Strategic Petroleum Reserve) release from the USA, or possibly even export restrictions on petroleum products", ING said in a note.

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Oil prices climbed down from their 3 ½ year high to reach US$73 per barrel, with Brent trading at US$76.96 Tuesday afternoon.

Ardebili also told Trump, "You are hammering on good guys in OPEC".

Prices have risen as a result of Washington's plans to reimpose sanctions against Iran, OPEC's No. 3 producer, analysts said.

Despite these measures, Goldman Sachs said in a July 4 note to clients that "the market will remain in deficit" in the second half of the year.

Every extra dollar on the price of a barrel of crude costs USA consumers roughly $3 billion a year, assuming refining margins and fuel taxes remain constant, and ignoring gasoline consumption by businesses and the like. S. oil has been 10 to 11 dollars. This must be a two-way street.

However, the market response was minimal given the continuing threat of U.S. sanctions against Iran and a reported threat by the Iranians to close the Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman and is an important shipping route for oil.

Unlike the situations with other presidents, however, Trump is directly linked to the current increases because of his push to block purchases of Iranian oil.

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