All eyes on OPEC as Trump gripes over prices

In response, Saudi Arabia, Iran's rival and the largest producer in OPEC, said it would consider increasing supply.

The U.S. has lobbied Saudi Arabia and other members, arguing they need to raise output by 1 million barrels a day to keep prices in check, people told Bloomberg News earlier this month.

The U.S. move has put pressure on European and Asian clients to stop importing Iranian oil or doing business with the country.

Longer term, the market could tighten as demand increases if OPEC fails to cover supply shortfalls, the International Energy Agency said on Wednesday. On April 20, Donald Trump took to Twitter to lambaste the cartel's push for higher prices.

"You can not place sanctions on two OPEC founder members and still blame OPEC for oil price volatility", he said in a statement to Reuters, referring to itself and Venezuela.

In the letter, the senators said a run-up in oil prices is "effectively a tax on every American family's discretionary budget" since the price of oil directly affects the price of gasoline.

In part because of strong demand, US crude inventories C-STK-T-EIA fell by 4.1 million barrels in the week to June 8, to 432.4 million barrels. Using drilling advances such as fracking, operators in Texas and North Dakota have pushed USA production higher.

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U.S. oil production has more than doubled in the past decade, including a 19 percent increase since OPEC's limits took effect in January 2017, according to the U.S. Energy Information Administration.

US production rose to 10.9 million barrels a day in the week, but Kilduff said the market appeared able to absorb the increase.

The potential collaboration between the two major oil buyers would present another challenge for OPEC, which is facing competition for market share in Asia from the flood of crude pumped in the Gulf of Mexico and shale fields of Texas. "Not good!" the USA president said on Twitter.

Trump's tweet - similar to one he wrote in April, blaming OPEC for "artificially Very High" oil prices - came a week before a much-anticipated OPEC meeting in Vienna and may have been created to influence the discussion.

OPEC is under scrutiny in Congress, too. The measure now goes to the full House.

"It's confusing why the president would come out with a statement like this now", Smith said. Crude oil output was nonetheless down 610,000 bpd on 2017 due to Venezuela's sharp decline.

Democrats are trying to blame Trump for higher gasoline prices, sensing the issue will resonate with voters in the November midterm elections that will determine control of the House and Senate. "The real catalyst for the recent rise in prices is the sanctions on Iran".

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