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Trump accuses OPEC of raising oil prices

13 June 2018

Rising oil output by the world's third biggest producer, the U.S., is also affecting prices.

U.S. President Donald Trump said on Wednesday oil prices were too high and blamed OPEC, renewing his attack even as prices fell on Wednesday amid expectation that the group may relax its output cuts later this month.

"The United States shows by far the biggest gain (about 75 percent of the total across 2018 and 2019), but recently this expansion has not been without stress", the report said, referring to a gap in recent weeks between the USA and European oil futures contracts. USA light crude was 20 cents lower at $66.16.

His tweet comes in advance of a meeting of the Organization of the Petroleum Exporting Countries and Russian Federation planned for June 22 in Vienna to discuss easing supply caps that have been in place since the beginning of 2017.

OPEC and other producers will meet on June 22-23 in Vienna to discuss future production policy.

But the Paris-based IEA, echoing statements from oil producers as well as analyst comment in recent weeks, said there may be a change to the so-called Vienna agreement.

However, oil dipped on Wednesday amid speculation that the deal may be revised following reports that both Russian Federation and Saudi Arabia are ramping up production.

"The prospect of easing supply curbs from OPEC-led producers continues to be reflected in oil's overall depressed price", said Lukman Otunuga, analyst at futures brokerage FXTM.

In the United States, the American Petroleum Institute said on Tuesday that crude oil inventories rose by 830,000 barrels in the week to June 8, to 433.7 million.

OPEC producers and non-OPEC countries struck a deal in 2016 to trim production by 1.8 million barrels per day to reduce a global glut of oil.

With output in Russian Federation rising back above 11 million bpd in June and Saudi production climbing to more than 10 million bpd, supplies from the top three producers are increasing.

The U.S. Energy Information Administration report on crude oil inventories is due to be released on Wednesday at 10:30am EDT.

Trump accuses OPEC of raising oil prices