Oil prices drop after a tweet of Trump urges OPEC to increase production

BAGHDAD, Oil prices declined overnight after US President Donald Trump urged OPEC to increase production during its meeting in Algeria, as the upward momentum that pushed the market earlier this week in four-year highs slowed.

Brent crude ended the session low 78 cents, or 0.9 percent, to settle at $ 78.70 per barrel.

US crude was down 32 cents, or 0.45 percent, at $ 70.80 a barrel after climbing nearly 2 percent in Wednesday's session.

Brent crude is trading at a low of just under $ 80 a barrel, near a four-year high on expectations that US sanctions on Iran, OPEC's third largest producer, will cut global supply.

OPEC and other major non-OPEC producers, led by Russia, will meet on Sunday in Algeria to discuss how to distribute supply surpluses to compensate for the shortage of Iranian supplies.

The meeting is unlikely to approve a formal increase in crude output, despite growing pressure to prevent a sharp rise in prices.

"We protect the Middle East, and without us they will not be safe in the long run, yet they continue to push oil prices higher!" Trump said. We will remember that. "

"OPEC, the monopolist of the market, has to push prices down now!"

Under pressure from the US President, OPEC, Russia and other allies agreed in June to increase production by 1 million bpd after they took part in a deal to cut supplies that came into force in 2017.

Nevertheless, many traders and analysts expect Brent to surpass $ 80 soon.

Source: National Iraqi News Agency