London: Oil prices fell on Monday, extending the Friday decline that halted a weeks-long rally, after President Donald Trump demanded that producer club OPEC raise output to soften the impact of US sanctions against Iran.
Brent crude futures were down 48 cents, or 0.7 per cent, at $71.67 a barrel by 11:00 GMT. US West Texas Intermediate (WTI ) crude futures lost 24 cents, or 0.4 per cent, to $63.06. Both benchmarks fell by about 3 per cent in the previous session.
Trump on Friday said that he told the Organization of the Petroleum Exporting Countries (OPEC) to lower oil prices.
“Gasoline prices are coming down. I called up OPEC, I said you’ve got to bring them down. You’ve got to bring them down,” Trump told reporters.
“Spoke to Saudi Arabia and others about increasing oil flow. All are in agreement,” the president later tweeted.
Trump’s remarks triggered a sell-off, putting at least a temporary ceiling on a 40 per cent price rally since the start of the year. The rally had gained momentum in April after Trump tightened sanctions against Iran by ending all exemptions previously granted to that major buyers.
US sanctions on Venezuela are also working to tighten global supply as fighting in Libya threatens to curb output there as well.
“We are dealing with a market that's not actually short of supply but is short due to politically-motivated action, and we know how quickly that can be turned around if necessary,” Saxo Bank analyst Ole Hansen told Reuters.
“Being a bear in the market is a very lonely place now.”
— Reuters
