Trump Piles Pressure on OPEC to Pump More

President Donald Trump on Thursday told OPEC its members should start pumping more oil, marking his second warning to the producer group this year as crude prices continue to rise.

Trump’s latest tweet comes as OPEC and a group of allies led by Russia are cutting production following a collapse in oil prices in the final months of 2018. The output curbs have played a major part in the rebound in the oil market this year.

Trump’s tweet sent prices lower in early trading. Brent crude and U.S. West Texas Intermediate crude futures were both off by more than 1.5 percent just after 9 a.m. ET. The benchmark contracts were already down about 1 percent before Trump sent the tweet.

Analysts say pressure from the Trump administration — punctuated by a series of Twitter attacks on OPEC — contributed to the producer group’s decision to lift production limits last June. But in recent months, OPEC members have mostly shrugged off Trump’s social media demands.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza