US crude climbs, as OPEC+ brushes aside Trump’s call to increase output

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US crude climbs, as OPEC+ brushes aside Trump’s call to increase output

On Monday, the 29th of April 2019, US crude climbed higher despite US President Donald Trump’s call for an increased output to OPEC nations to offset impacts of US sanction on Iran, after Saudi officials alongside other OPEC+ members had said that they had no immediate intention to waive OPEC+’s decision of curbing crude oil production by 1.2 million barrels per day up to June this year.

On Monday’s (April 29th) market wrap-up, US crude gained 0.3 percent to $63.50, while Brent crude was plummeted by 0.2 percent to $72.04. Nevertheless, both US and UK crude fell more than 3 percent on Friday (April 26th), after Trump had called OPEC nations to increase output for neutralizing the impacts of a newly imposed US sanction on Iranian heavy crude.

Initially, followed by Trump’s call, Saudi officials had been quoted saying that they might increase productions, had there been potential buyers. However, on Monday (April 29th), market bias again appeared to be bullish, after reports had unveiled that no OPEC representative or Saudi Government had shown interest on Trump’s call.

Eventually, US crude had again gained on Monday (April 29th), after witnessing a 40 percent rally so far this year, as OPEC+ seemed to be turning a deaf ear to Trump’s frequent urge of increasing crude oil production.

Meanwhile, both Brent and US crude oil outlook appeared to be bullish, and further upside momentum seemed to be on the card, as Iran sanction would be effective by Thursday, May 1st amid an ongoing sanction on Venezuelan crude and declined output from Libya amid a mass-weaponization of its Saharan oil fields following multiple rounds of armed conflicts over the dominance of Libya’s largest oil field.