On Wednesday, 5th December, the US president Donald Trump was quoted as urging the organization of the Petroleum Exporting Countries (OPEC) and its allies not to cut oil output next year. As a causes belly, he also added that it might trigger a higher oil price worldwide.
“Hopefully OPEC will be keeping oil flows as is, not restricted. The World does not want to see, or need, higher oil prices! ” US President Donald Trump tweeted ahead of OPEC event, as US oil price is trading at a tight range between $53.45-$54.10 per barrel.
OPEC and its allies are set to meet in Vienna on Thursday to weight the production and Friday would hold the talks with allies such as Russia. However, the US government oil production, alongside, inventory data are also due on Thursday and a massive market volatility is expected, which could result in an abrupt flip-flop.
The untold kingpin of OPEC, Saudi Arabia, has agreed to the oil output cut, yet, it is facing pressure from US president, as he is asking to keep the oil flows steady to keep the prices lower. In fact, Trump has been found complaining about the oil price frequently this year.
At this standpoint, Russia remained as the only hurdle, Saudi Arabia, alongside OPEC, have to pass through regarding reducing oil production, as Russia’s position on oil output cut is still uncertain, however, it agreed to a moderate amount of output cut.