Trump's tweets hurt oil prices more than help, StanChart says

The cabinet stressed that one of the most important objectives of the kingdom's petroleum policy is to always seek to achieve balance and stability in oil markets, as well as to coordinate and consult with other producing countries and major consuming countries.

"Recurring salvos in the trade war and falling asset prices raise the question of how much tariffs could damage the global economy", U.S. bank JPMorgan said.

President Trump also touted the promise in a tweet Saturday.

US crude stockpiles are forecast to have declined 5 million barrels last week, according to a Bloomberg survey ahead of government data to be released on Thursday.

Last month President Donald Trump withdrew the United States from the landmark Iran nuclear deal, re-imposing U.S. sanctions that had been suspended in return for curbs on Tehran's nuclear programme.

"US oil diplomacy has at points in the past been highly successful in calming oil markets, and it has generally been more successful the quieter it has been", the analysts wrote.

Some are saying that the United States' recent declaration of zero tolerance for Iranian exports has caused bullish investors to reassess the impact of USA sanctions on Iran's exports, believing that shipments may fall by 1.1 million bpd by year end. This will include allowing private companies to directly export the oil.

(ADNOC) said on Tuesday it could increase production by several hundred thousand barrels per day if needed.

Crude prices ended slightly higher on Tuesday after a volatile session in which the USA benchmark passed $75 a barrel for the first time in more than three years before turning negative and later recouping its losses.

Russian Federation and Saudi Arabia will face "dire consequences" if they increase their oil production, the head of the state energy firm said.

And he confirmed that U.S. secondary sanctions on firms dealing with Iran would "snap back" on August 6 for trade in cars and metals and on November 4 for oil and banking transactions.

Craig added that more issues could develop as Washington tightens the sanctions noose on Iran and Venezuela.

Last week, US State Department officials announced that they are pushing nations to bring down purchases of Iranian oil to zero.

An International Energy Agency scenario projects oil production falling by around 1.5 million bpd due to the loss of Iranian and Venezuelan oil. That's what we're doing.

Mr Trump is not the first US President to attack OPEC.

  • Eleanor Harrison