Are gasoline prices in the USA really too high?

Iran's OPEC governor Hossein Kazempour Ardebili

"The more that Saudi Arabia adds to the market, the less of a supply cushion we have - that's a bullish twist to a bearish development", said Yawger at Mizuho.

"The responsibility of paying unnecessary prices for oil by all consumers of the whole world, especially in USA gas stations, is exclusively upon your (Trump's) shoulders and the price of over $100 per barrel is yet to come", Kazempour said.

"We have already seen a move towards UAE increasing investment in hydrocarbon sector".

The UAE was the fourth largest Opec producer with 2.89 million barrels per day in June after Saudi Arabia (10.3mbpd), Iraq (4.5mbpd) and Iran (3.7mpbd).

Iran OPEC Governor Hossein Kazempour Ardebili said President Donald Trump's tweets have driven up oil prices. Still, US officials continue to demand the world, including major Asian powers, stop buying from Iran.

"On China, India - yes, certainly". Although there is some general nervousness over the U.S. "And yes, we will certainly be requesting that their oil imports go to zero, without question".

"Further declines in US crude oil inventories and the significant outage in Libyan oil supply are helping to keep a floor under the market", said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London.

"The OPEC Monopoly must remember that gas prices are up & they are doing little to help", Trump wrote on his personal Twitter account.

Saudi Arabia and Russian Federation have agreed to increase output, but most of their 1 million bpd increase was expected to cover the short fall from Iran. Prices to (sic) high! "People are firming up their numbers of how much Iranian oil exports will be lost, and how much OPEC will increase". According to the Financial Times, traders and analysts have said that adding the full two million barrels per day requested by Trump would stretch the Kingdom to its limit and leave global spare capacity close to zero, with little buffer should there be further supply outages.

Apart from Iran, Venezuela, Libya and Angola are also facing chronic production issues.

Even if the USA government grants some waivers to allies, FGE estimated 1.7 to 2 million bpd of crude and condensate would be cut out of markets once its sanctions are implemented. Additionally, about 300,000 bpd of Libyan oil has been taken off the market.

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