Oil price up as Trump calls OPEC to lower prices

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"Our plan is to meet demand", said Saudi Energy Minister Khalid Al-Falih.

Zanganeh was referring to a tweet by Trump in which he linked USA support for Middle Eastern countries to oil prices on Thursday and again urged OPEC to lower prices.

"The market does not have the supply response for a potential disappearance of 2 million barrels a day in the fourth quarter", Mercuria Energy Group Ltd.co-founder Daniel Jaeggi said in a speech at the S&P Global Platts Asia Pacific Petroleum Conference, knows as APPEC.

Brent crude, the benchmark for more than half the world's oil, rose 2.5 percent to $80.79 a barrel at 9:44 a.m.in London, the highest since November 2014. WTI oil is changing hands at $71.84 per barrel, up 1.5 percent on the day.

In August, OPEC and its allies cut production by 600,000 bpd more than their pact required, mainly as a result of falling output in Iran as customers in Europe and Asia reduced purchases ahead of the U.S. sanctions deadline.

"The biggest issue is not with the producing countries, it's with the refiners, it's with the demand".

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Saudi Arabia, Russia and the United Arab Emirates insisted they had the spare capacity to satisfy the market's needs, but wouldn't tap it preemptively.

Iranian oil exports have been in jeopardy since Washington announced re-imposing unilateral sanctions against the Islamic Republic after US President Donald Trump in May pulled out of the 2015 nuclear deal between Tehran and a broad alliance of world powers. "The reason Saudi Arabia didn't increase more is because all of our customers are receiving all of the barrels they want".

Al-Falih added that Saudi Arabia, the cartel's largest producer, still expects to pump more crude in September and increase output again in October.

Trump has repeatedly called for a hike in production by countries other than Iran to reduce oil prices, which have partially recovered since the December 2016 agreement, to trade close to $80 per barrel this month.

"OPEC is struggling to battle through a flawless storm of strong demand and bigger-than-expected supply losses", said Daniel Hynes and Soni Kumari, Commodity Strategists at ANZ Bank last week.

The OPEC oil cartel raised its global production forecast on Sunday based on higher-than-predicted U.S. output in a report outlining a long-term rise in net demand, particularly in developing countries. "They got prices higher and they are going to get them higher still". Contributions of 200 words or more will be considered for publication.

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