The oil price has edged a little lower Friday, after US president Trump criticised OPEC for the high level of the oil price. His tweet comes as US shale oil production ramps up, but OPEC and non-OPEC members stick to their oil output cap limits and as other geopolitical events also affect the price.
By 1440 BST, the price of Brent Crude oil had slipped around 0.65% to $73.30 per barrel. The price of US WTI Crude oil meanwhile, was 0.56% lower at $67.95 per barrel.
Oil price “artificially high”
Earlier Friday Trump sent out a tweet sharing his views of the current high price of oil.
“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!,” he tweeted.
The comment comes as the price of crude oil has been rising for much of the week. Investors are concerned over events including the Syria conflict and amid comments that Saudi Arabia has discussed targeting oil at $100 per barrel.
That view was shared ahead of the IPO of Saudi Aramco and also fuel higher revenues for the economy as it works to transform and improve the region.
OPEC oil cap agreement remains in place
Another detail adding upward pressure on the price of oil is the ongoing oil output cap agreement between OPEC and some non-OPEC producers.
According to recent OPEC data, compliance to the agreement hit another high in March – the fifth straight month a fresh record high compliance rate has been achieved. A Bloomberg report said the output cap compliance rate hit 164% in March, up from 148% in February, as Saudi Arabia’s oil output fell a little, during March.
Meanwhile, shale oil output rates remain high and potential output could hit 7 million barrels per day during April, according to the Energy Information Administration.