Trump declares oil prices 'too high', blames Opec

U.S. President Donald Trump and Iran exchanged sharp words over oil prices, with Trump blaming OPEC for high oil prices and Tehran accusing him of stoking volatility after he withdrew last month from a global nuclear arms deal with Iran.

"Oil prices are too high, OPEC is at it again". Crude inventories fell by 4.1 million barrels in the week to June 8, exceeding analysts' expectations for a decrease of 2.7 million barrels.

Trump's tweet - similar to one he wrote in April, blaming OPEC for "artificially Very High" oil prices - came a week before a much-anticipated OPEC meeting in Vienna and may have been created to influence the discussion.

With output in Russian Federation rising back above 11 million bpd in June and Saudi production climbing to more than 10 million bpd, supplies from all three top producers are increasing.

Since early in 2017, however, OPEC has coordinated with Russian Federation, another oil-exporting country that is not an OPEC member, to try to regulate global supplies.

Some estimates put the post-crash reduction in investment by major oil companies such as Exxon Mobil, Chevron and BP at more than $1 trillion.

The IEA said it expects global oil demand to grow 1.4 million bpd this year, and in 2019, and will top 100 million bpd in the fourth quarter of 2018.

Opec crude supply edged up to 50,000 bpd last month to nearly 32 million bpd, while the IEA revised upwards its estimate for 2018 non-Opec production growth to 2 million bpd, and in 2019 it expects to see bumper growth, albeit slightly reduced, of 1.7 million bpd.

Non-Opec growth for 2019 also includes a modest increase from Russian Federation "reflecting a possible contribution to compensating for lost production from Iran and Venezuela", analysts said. The IEA said OPEC countries in the Middle East could quickly boost production by 1.1 million bpd.

The IEA meanwhile warned that whatever the outcome of the meeting, "the market will be finely balanced next year, and vulnerable to prices rising higher in the event of further disruption". "It is possible that the very small number of countries with spare capacity beyond what can be activated quickly will have to go the extra mile". OPEC reported in its monthly oil market report Tuesday, that Saudi Arabia has already increased production.

Opec producers and non-Opec countries struck a deal in 2016 to trim production by 1.8 million barrels per day to reduce a global glut of oil.

"Oil prices are too high, OPEC is at it again".

OPEC itself spotlighted United States output in its own monthly report on Tuesday, citing the growth of non-OPEC supply as one of several question marks hanging over the situation. World demand growth is unchanged.