Trump, Iran trade sharp words over oil prices ahead of OPEC meeting

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Brent crude LCOc1 was up 87 cents, or over 1 percent, at $76.75 a barrel by 1:38 p.m. EDT (1938 GMT).

The deal, which is due to run out at the end of 2018, has succeeded in boosting oil prices above $70 a barrel from below $30 a barrel in early 2016.

USA crude stocks fell more than expected last week, while gasoline and distillate inventories dropped, the Energy Information Administration said on Wednesday.

USA production rose to 10.9 million barrels a day in the week, but Kilduff said the market appeared able to absorb the increase.

"Oil prices are too high, OPEC is at it again". "It seems like we need nearly every barrel of that to keep up with this refining demand".

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Russia's production was 11.1 million barrels a day in June, exceeding its quota, according to sources familiar with the matter.

The benchmark price of crude has surged from around $50 a barrel last summer to within a breath of $80 a barrel a few weeks ago.

"This is the most political OPEC meeting in a long time", said Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd. "The withdrawal from OPEC + will not be discussed", he said, confirming that Putin's meeting with the crown prince of Saudi Arabia will be held on Thursday. Moscow's pledge in the deal is to shave off 300,000 bpd from the October 2016 level, which was the country's highest monthly production in nearly 30 years-11.247 million bpd.

"I think in the near future there will be time to release supply", Saudi Energy Minister Khalid Al-Falih said at the St. Petersburg International Economic Forum in Russian Federation in late May.

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In April, Saudi Energy Minister Khaled al-Faleh said the global market has the capacity to absorb higher oil prices - a remark that drew a swift reaction Trump.

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.

Fund manager Pierre Andurand at Andurand Capital was bullish.

But OPEC said on Tuesday the outlook for the oil market in the second-half of this year was highly uncertain and warned of downside risks to demand.

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