Iran says Trump is why oil prices are now so high

Iran is the third biggest producer of oil in the Organization of the Petroleum Exporting Countries (OPEC).

"OPEC - and OPEC nations - are, as usual, ripping off the rest of the world."

In addition to ripping United States foes such as Iran and Venezuela, President Donald Trump took direct aim at America's Gulf allies during his speech at the UN General Assembly meeting today.

However, oil prices rising is nothing new in the face of the global market. He called on other nations not to rely on OPEC, lamenting the dependence Germany has on Russian Federation. Eventually, I do believe that the market will be used to that price and we will be able to go higher, but we may be a little bit overextended over the last couple of days. The refusal of OPEC to raise production negates the call by Trump for action to raise global supply.

The WTI Crude Oil market rallied during trading on Tuesday, but it seems to be struggling with the idea of $73 a barrel. The news was bearish for oil, but some analysts expressed skepticism about the efficiency of the mechanism on the grounds that the USA could simply expand the scope of the sanctions to include barter deals between the European Union and Iran.

"A renewed rise in Cushing, Oklahoma, inventories and a rise in domestic crude oil production added to the bearish tone of the report", said John Kilduff, a partner at Again Capital in NY. Washington wants to reduce Iran's oil exports effectively to zero with renewed sanctions in November and has been encouraging its allies to cut their oil imports from Iran. In fact, it has been rising since early 2017, when the Organisation of the Petroleum Exporting Countries (OPEC), started halting the output to lift crude prices, together with other suppliers including Russian Federation.

"If he wants the price of oil not to go up and the market not to get destabilized, he should stop unwarranted and disruptive interference in the Middle East and not be an obstacle to the production and export of Iran's oil".

A day after the American Petroleum Institute reported an inventory build that some traders took as a surprise and started selling their oil holdings, the EIA confirmed a build, at 1.9 million barrels for the week to September 21.

"After the weekend's meeting, the voices of those who foresee 100 dollars a barrel and compare the current backdrop to the 2007/2008 bull run are getting louder", said PVM Oil Associates strategist Tamas Varga.

The price of oil has been steadily going up since the early months of 2017.

Richard Robinson, manager of the Ashburton Global Energy Fund, said higher prices are nearly certainly on the cards.

Most of the potential supply shortfall has already been priced into the contract, Again Capital's Kilduff said. In June, the group agreed to restore some of that output and return to its goal of keeping 1.8 million barrels a day off the market.

Release of USA crude data will be watched closely by oil investors going forward.

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