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Crude Prices Slide

Crude Prices SlideCrude Prices Slide

Oil prices fell on Monday, extending a slump from Friday that ended weeks of rallying, after President Donald Trump demanded that producer club OPEC raise output to soften the impact of US sanctions against Iran. 
Brent crude futures were at $71.59 per barrel, down 56 cents, or 0.78%, from their last close. 
US West Texas Intermediate crude futures were at $62.93 per barrel, down 37 cents, or 0.58%, from their previous settlement, CNBC reported. 
Both benchmarks fell around 3% in the previous session. Trump said on Friday he told OPEC to lower oil prices. 
“Gasoline prices are coming down. I called up OPEC, I said you’ve got to bring them down. You’ve got to bring them down,” Trump told reporters. 
“Spoke to Saudi Arabia and others about increasing oil flow. All are in agreement,” the president later tweeted. 
Trump’s remarks triggered a selloff, putting at least a temporary ceiling on a 40% price rally in oil prices since the start of the year. The rally had gained momentum in April after Trump tightened sanctions against Iran by ending all exemptions that major buyers, especially in Asia, previously had. 
Traders said the market was shifting its focus to the voluntary supply cuts led by OPEC, de facto headed by the world’s top exporter Saudi Arabia. 
“We are of the view that Saudi Arabia will increase output as soon as May, something they were likely to do anyway in the lead up to summer,” ING bank said. “The Kingdom could increase output by 500 million barrels per day and still be in compliance with the OPEC+ deal for the month of May.” 

 

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