Trump criticizes OPEC, calls oil prices ‘artificially’ high
As domestic gasoline prices surged to their highest level in three years, President Donald Trump railed against the OPEC oil cartel Friday, declaring that the group was unjustifiably manipulating supplies for selfish gain.
He wrote on Twitter: “Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted!”
The Organization of the Petroleum Exporting Countries has been a target of derision by U.S. leaders since the Arab oil embargo of 1973 caused long lines at the pump and badly damaged the economy. But soaring production in the United States, Canada and a few other countries has reduced OPEC’s influence.
The renewed attention on OPEC comes as Saudi Arabia, the world’s largest oil producer, is cutting back exports to increase prices and add appeal to its proposed initial public offering of Saudi Aramco, the national oil company. At the same time, Saudi Arabia and others in the region have made an alliance of convenience with Russia, a nonOPEC member heavily dependent on oil revenues to finance its government. Together they have restrained production since 2016, reducing global stockpiles.
“Prices are high,” said Rob West, an analyst at Redburn, a London research firm. Noting that Trump may have a point, he added, “I do see some artificiality in the prices we see today.”
OPEC and non-OPEC producers gathered Friday in the Saudi city of Jiddah in an effort to continue the policy even as the price of Brent crude, the global benchmark, has climbed above $70, more than double the low point reached in early 2016.
The price of crude is the major reason American drivers are paying more at the pump as the summer driving season approaches. The average price for a gallon of regular gasoline Friday was up 19 cents over the past month and 33 cents from a year ago. It is the highest level since the summer of 2015.
In some states prices in the past week rose more than a penny a gallon every day.