Oil Prices and News

Trump criticizes OPEC again for high oil prices; 'Not good!'

Key Points
  • "Oil prices are too high, OPEC is at it again. Not good!" President Trump tweets.
  • Oil prices have fallen recently on reports the Trump administration asked top OPEC producer Saudi Arabia to pump more to offset U.S. sanctions on Iran.
  • U.S. crude oil futures are down more than 9 percent from a 3½-year high over the last three weeks, pressured by expectations OPEC will hike output at a meeting next week.
President Donald Trump participates in the signing ceremony for the "VA (Veterans Affairs) Mission Act of 2018" in the Rose Garden of the White House in Washington, U.S., June 6, 2018.
Carlos Barria | Reuters

President Donald Trump is again blaming OPEC for high oil prices, even though crude futures have recently retreated from 3½-year highs on reports that his administration asked Saudi Arabia to manage the market.

"Oil prices are too high, OPEC is at it again. Not good!" Trump tweeted Wednesday morning.

U.S. crude oil futures were trading near $66 a barrel on Wednesday and have been fallen about 9.5 percent from a multiyear high of nearly $73 a barrel on May 22. Oil prices fell this month on reports that the Trump administration asked Saudi Arabia, OPEC's biggest producer, to start pumping more as renewed U.S. sanctions on Iran begin to hit the country's exports.

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Trump restored sanctions on Iran, OPEC's No. 3 producer, last month. The severity of the penalties helped to boost oil prices to new highs. Treasury Secretary Steve Mnuchin assured reporters at one point that Washington had discussed limiting the impact of Iranian disruptions with other producers.

Crude futures began slipping in late May after Saudi Arabia and Russia said they were considering easing an agreement to limit output among two dozen oil producers in light of the U.S. sanctions on Iran and falling output in Venezuela, which has also been sanctioned by Trump's administration.

Hossein Kazempour Ardebili, Iran's OPEC governor, suggested on Wednesday that Trump was glossing over his role in contributing to higher prices.

"You cannot place sanctions on two OPEC founder members and still blame OPEC for oil price volatility," he told Reuters.

Oil prices are also lower than the last time Trump tweeted about high oil prices. On April 20, Trump tweeted that "oil prices are artificially Very High" due to actions by the Organization of the Petroleum Exporting Countries.

WTI oil prices traded near $68 at the time, after hitting a then-three-year high above $69 a barrel that week. Prices are up more than 40 percent in the last 12 months.

In 2017, OPEC and some non-OPEC producers, including Russia, started withholding output in an effort to curb global oversupply. OPEC and other producers are set to meet on June 22-23 in Vienna to discuss future policy on production.

On Tuesday, Saudi Arabia reported that its oil output jumped by 161,000 barrels per day in May to more than 10 million bpd, just below the ceiling it agreed to in November 2016.

In oil markets, the Energy Information Administration is set to release domestic production and inventory data later Wednesday.

— Reuters contributed to this report.