Oil slumps over 3 percent, as Trump criticizes OPEC again on output cut

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Oil slumps over 3 percent, as Trump criticizes OPEC again on output cut

Crude oil futures had fumbled over 3 percent on Monday, the 25th of February, after the US President Donald Trump had again called OPEC, a 28-nation pact of oil producing nations, to “relax and take it easy” while boosting the crude oil prices, saying that the rate of climbing had been too high to grapple with.

While this report was being prepared, the 25th of February, GMT. 21.30, the UK crudes were down over 2 percent to $65.09 per barrel, while the US crude futures drained more than 1.5 percent to $55.53 a barrel. Trump wrote in his latest tweet, in a series of comments on crude oil price since April 2018, “Oil prices getting too high.

OPEC, please relax and take it easy. The world cannot take a price hike - fragile!” Following the release of the tweet, the crude prices rapidly reversed their earlier gains over worries of output surge and US inventory boost, since US allies in the gulf could not really prove themselves worthy of investors’ belief against United States’ command.

Both Brent and US crude had surged over 20 percent since the beginning of the year when OPEC seemed to be adamant overreaching their target production cut of 1.2 barrels per day. The situation got worsened afterwards when the US imposed sanctions on Venezuelan oil and crippled payment system of Iranian oils.

Besides, optimisms on trade talk had also been catapulting the crude price. In fact, analysts are assuming that again the United States had deployed a ploy to curb crude oil price and to proffer larger revenues to its refineries by allowing a few countries, which were merely pawn to Trump Administration, to purchase another round of Iranian oil, as a partner at Again Capital Management, John Kilduff said about Trump’s tweet, “If you read into it, I think there’s speculation there will, in fact, be another round of waivers granted to countries and companies to buy Iranian oil. That’s also why you’re seeing the negative reaction. ”