What Is OPEC? Trump Attacks Oil Price 'Monopoly'

Hossein Kazempour Ardebili was quoted by the oil ministry's website Thursday as telling Trump to "please stop", adding that "with your frequent and indecent tweets oil prices have gone up 10 dollars".

Faced with the return of USA sanctions, Iran is studying a revival of a plan to barter crude oil for goods, possibly resuming the scheme that it used to try to blunt the impact of the previous round of sanctions between 2012 and 2016. However, Venezuela is expected to continue to be a problem, and unless the US softens its tone toward Iran, it will continue to contribute to the overall bullishness in the market.

In spite of these measures to replace disrupted supplies, Goldman Sachs said in a July 4 note to clients that "the market will remain in deficit" in the second half of the year.

Iran has warned that the strong rhetoric by US President Donald Trump against it and other oil producers could soon push up crude prices to as high as $100 per barrel.

In Vienna, they'll be discussing how to salvage the 2015 Iran nuclear deal which Trump withdrew from two months ago. While OPEC is facing mounting pressure from Trump to do more, America's sanctions on group members Iran and Venezuela are adding uncertainties, just as United States tariffs on Chinese goods kick in on Friday.

America wants to cut Iran's oil exports to zero by November.

"On the bearish side both Saudi Arabia and Russian Federation are living up to their promise to increase output", said Tamas Varga of oil broker PVM. Prices to (sic) high! In North Africa, OPEC members include Algeria and Libya.

"Iran's exports are some 2.7 million bpd, including condensate", it noted.

An International Energy Agency scenario projects oil production falling by around 1.5 million bpd due to the loss of Iranian and Venezuelan oil. The facility produced 253,000 bpd on average previous year.

He said oil sector contracted by 1.6 per cent past year mainly because of the Opec mandate that saw the UAE cut its oil production by 150,000 barrels per day from an average of 3.09mbpd in Q4 2016 to an average of 2.89m in Q4 2017, representing a drop of almost 6.4 per cent.

"Over the course of last week, downside risk to future Iranian oil supply has increased rapidly", Martijn Rats, global oil strategist and head of the bank's European oil and gas equity research, told CNBC.

Vanessa Coleman