OPEC Works Toward Deal as Saudis Propose Plan for Higher Output

Oil bumps up on US inventories decline, WTI pokes back into $65

India Urges OPEC Nations To "Fill Supply Gap", Ensure Sustainable Prices

Washington and Beijing have both threatened punitive tariffs on each other's exports, including USA crude oil.

The Iranian oil minister has lashed out at the USA president's call on the Organization of the Petroleum Exporting Countries to increase oil production, saying OPEC is not an American organization.

The Saudi proposal involves a complex calculation based on how much the group has cut production beyond the initial target of 1.8 million barrels a day set in 2016, the delegates said, asking not be named discussing private meetings.

OPEC could distribute the increase unevenly to allow those that can produce more - Saudi Arabia, Kuwait and the United Arab Emirates - to fill in for those that cannot, although this could face resistance from countries reluctant to give up market share such as Iran.

Several other OPEC members, including Venezuela and Iraq, are also against major changes to the pact as they are unable to immediately boost production.

European Union retaliates against Trump’s metal tariffs
EU countertariffs on a list of United States products would come into force on Friday, the European Commission said Wednesday. Mexico retaliated against the move two weeks ago while Canada said it would place tariffs on U-S exports from July the first.

Iran had been expected to oppose any rise in crude output, but it has now signalled it may support a small increase.

"I'm confident that at the end of the day reason will prevail", Saudi Energy Minister Khalid Al-Falih told reporters in Vienna after a succession of meetings. Venezuela's oil industry is collapsing due to years of mismanagement and an economic crisis. Zanganeh has said the president is to blame for high prices because of his unilateral withdrawal from the worldwide nuclear agreement.

Prices of Brent Crude were down to $73.34 on Thursday, after highs earlier this month of around $80, while USA light crude CLc1 dropped $1 to $64.71. "OPEC is not part of the Department of Energy of the United States".

"Globally, crude prices have gone beyond the threshold, which can be sustained by the world, particularly countries like India, which is a key driver of world economy", Mr. Pradhan said at an OPEC conference in Vienna.

"There is a lot more at stake than just ticking a box and say: 'we got this out of the way", the minister said, nothing that "timing isn't critical for the government of Saudi Arabia".

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