Brent crude futures LCOc1 were at $77.82 per barrel, up 6 cents from their last close.
The lack of response in U.S. crude oil to a demand earlier this week by President Donald Trump that the Organization of the Petroleum Exporting Countries cut its prices has added to the evidence that a further move higher is possible once the current period of consolidation is over.
Recently the price of West Texas Crude hit $75 a barrel, and I think before the end of the summer, we may well see $85 a barrel.
Trump late on Wednesday accused the Organization of Petroleum Exporting Countries (OPEC) of driving up fuel prices.
However, there's no question that with USA gasoline prices climbing above $3 per gallon in many states, Trump has come under increasing pressure to come up with a solution, and as such, his liaison with Saudi Arabia, in which the kingdom has agreed to pump all-out to compensate for not only Iranian export losses but those of Venezuela, is the strategy - although unsurprisingly many western analysts doubt the Saudis can pump the required amount in so short a time. This must be a two way street.
President Trump spent part of his July 4 holiday shouting at OPEC on twitter, demanding lower gasoline prices.
Trump's efforts to contain spiking oil prices came amid piling pressure on the President ahead of November midterm congressional elections, in which he has to prove claims that tax cuts and federal regulations helped in boosting the economy.
Malaysia's Mahathir to visit China for talks on projects
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OPEC together with a group of non-OPEC producers led by Russian Federation started to withhold output in 2017 to prop up the market.
South Korea, a major buyer of Iranian oil, will not lift any Iranian crude and condensate in July for the first time since August 2012, three sources familiar with the matter said on Friday.
But while some have interpreted the Saudi move as a traditional Saudi card to always scramble to soothe American frustration and oblige to United States demands, other reports have suggested that Riyadh's move is the result of deep political calculations: step in to stabilize oil prices and compel the USA to adopt tougher measures on Iran.
In addition to reducing the price of its August barrels, Saudi Arabia also told the Organization of the Petroleum Exporting Countries (OPEC) that it increased production by nearly 500,000 barrels per day last month.
"OPEC has not defined oil prices for the past 30 years", Kazempour continued.
An Iranian oil official said the US president should stop tweeting about oil because Mr. Trump is making the situation worse, according to Bloomberg News. Saudi energy minister Khalid Al-Falih also said in Vienna last month that the country was increasing production. "Your tweets have driven the prices up by at least $10 per barrel". "We will make the enemy understand that either all can use the Strait of Hormuz or no one", Mohammad Ali Jafari, commander of the Islamic Revolutionary Guard Corp, was quoted as saying by Tasnim news agency. Further, rising trade war concerns in U.S. and China too dragged oil prices down, hitting a low of 76.60 levels as of 15:58 hours IST.
Saudi Arabian Oil Co will change its Asia crude pricing benchmark by replacing Platts' Oman assessment with the Dubai Mercantile Exchange's Oman futures from October 1. Analysts surveyed by Bloomberg had been expecting a median 5 million-barrel decrease as supplies typically decline this time of year amid strong demand from refiners.